* SPDR Gold Trust stays at record high
* Dollar eases against yen, euro
By Rebekah Curtis
LONDON, March 27 (Reuters) - Gold dipped on Friday as
investors weighed support from lingering economic uncertainty
against growing appetite for riskier assets such as equities.
Gold <XAU=> was at $927/929 per ounce at 1047 GMT, dipping
from $933.05 late in New York on Thursday.
Analysts said gold was coming under pressure as recent steps
by the U.S. government to bolster the ailing economy had
encouraged investors to brave battered stock markets.
The Nasdaq stock index in New York <> moved into
positive territory for the year to date on Thursday giving Asian
stocks an early lift, while the dollar eased against the yen and
euro after rebounding the previous day. [] [] []
"We had a very strong equity performance overnight on the
Dow...There's a little bit of a drift back into equity markets,"
said Nick Moore, a commodity strategist at RBS Global Banking &
Markets.
He said investors were pocketing profits on gold after a
strong quarter, but prices of the precious metal could march
higher still.
"It's had a cracking quarter. It's confounded the gold
atheists...I don't think you'd be an April fool for buying
gold," he said.
Bullion has risen about 5.5 percent so far in the first
quarter, having recovered from a six-week low of $882.90 hit on
March 18. But it is still 7 percent off the 11-month high above
$1,000 set in February, and well under an all-time peak of
$1,030.80 hit in March 2008.
The world's largest gold-backed exchange-traded fund, the
SPDR Gold Trust <GLD>, said holdings remained unchanged at a
record 1,124.99 tonnes as of March 26. []
For a graphic, click on:
https://customers.reuters.com/d/graphics/MKTS_SPDRGLD240309.jpg
For details on the gold holdings of the ETF listed in New
York and co-listed on other exchanges, click on:
http://www.exchangetradedgold.com/iframes/usa.php
RANGE BOUND
Gold prices have been stuck in ranges as players await new
incentives now that the U.S. government appears to have taken
all measures possible to deal with the country's economic and
financial distress, traders said.
But global fiscal spending has raised the risk of inflation
in the long term, keeping gold's appeal as a hedge against
inflation.
"Precious metals look like being capable of sustaining their
first-quarter upward trend," Barclays Capital said in a note.
"As support for gold switches from general concerns over the
viability of the financial sector to the potential for a
weakening dollar and a rise in inflation concerns due to
quantitative easing and fiscal stimulus packages."
Traders said some funds may have shifted from gold to silver
trust holdings, but the impact on spot gold prices was limited
due to the smaller size of the silver trust than that of gold.
Silver <XAG=> was at $13.35/13/41 an ounce from $13.46.
The world's largest silver-backed exchange-traded fund, the
iShares Silver Trust <SLV>, said its bullion holdings rose
116.49 tonnes or 1.4 percent from the previous day to a record
8,296.93 tonnes as of March 26. []
For a graphic, click on:
https://customers.reuters.com/d/graphics/CMD_SLVETF0309.jpg
Platinum <XPT=> traded at $1,135/1,145 from $1,141. The
metal used in auto catalysts to clean car emissions hit a
six-month high of $1,159.00 an ounce on Thursday after a senior
U.S. senator said the Obama administration task force was likely
to recommend more aid for automakers. []
"Platinum hit a six-month high, helped by the prospect of a
pick up in world growth and vehicle demand," Citigroup said in a
note.
Palladium was at $219/224 from $221.
(Additional reporting by Chikako Mogi in Tokyo; editing by Sue
Thomas)
