* March U.S. non-farm payrolls data meets expectations
* Largest silver ETF records outflow
(Updates with details of U.S. jobs data)
By Jan Harvey
LONDON, April 3 (Reuters) - Gold slipped as stock markets
extended their gains amid hopes the economic decline may be
bottoming out, after U.S. non-farm payrolls data came in broadly
in line with expectations.
The metal has fallen some 3 percent since late Wednesday
trading. Risk aversion has receded after a trickle of less dire
than expected economic data and a positively-received statement
from the G20 following their leaders' summit on Thursday.
Spot gold <XAU=> touched a low of $894.90 an ounce in the
wake of the data, and was quoted at $899.25/900.85 an ounce at
1254 GMT from $903.15 late in New York on Thursday.
"I think there are a number of things that have made people
conclude that things are not as bad as they were a month or two
ago," said Standard Chartered analyst Daniel Smith.
He said however he felt optimism towards the market was
becoming a touch overdone.
"For the time being gold is likely to remain under pressure
and other markets... will remain quite strong, but I don't think
that is supported by the underlying picture," he said.
"Things are not accelerating downwards as they were but that
does not mean we are moving back towards boom times."
U.S. stock futures added to gains in the wake of the data,
while European shares rose. [] []
The stock markets' sharp rally in recent sessions has
deflected interest from gold, and the metal has slipped as
investors sold bullion holdings to buy other assets.
"Recent (economic) data has not been better, but it has been
better than expected, so now people are talking about a slowdown
of a slowdown," Commerzbank analyst Eugen Weinberg said.
"For quite some time people were too positive for gold, so
it is not surprising we are under pressure."
If gold closes below $900, he said, further losses could be
possible.
IMF
Gold was also pressured by reports the G20 had discussed the
sale of 403 tonnes of gold held by the International Monetary
Fund, approved last year. []
Investment bank UBS said it expected the sale to be
conducted under the terms of the Central Bank Gold Agreement.
Signatories of the pact, which include the IMF and the European
Central Bank, are limited to sales of 500 tonnes of gold a year.
"Due to the limited amount of time available before the
expiry of the second agreement (in September) and the
legislative hurdles that must be cleared, we believe this almost
guarantees that a third five-year CBGA will be announced," it
said.
Among other precious metals, spot platinum <XPT=> was little
changed at $1,159/1,169 an ounce from $1,153.50, while spot
palladium <XPD=> was at $217.50/222.50 an ounce from $221.
Spot silver <XAG=> was at $12.77/12.82 an ounce from $12.90.
The world's largest silver-backed exchange-traded fund, the
iShares Silver Trust <SLV>, said its holdings dipped from a
record on Thursday. ETFs, which back up the securities they
issue with physical commodities, are a major element of demand.
[]
(Editing by Anthony Barker)
