* March U.S. jobs data shows highest unemplyment since 1983
* Largest silver ETF records outflow
(Updates after U.S. stock markets open)
By Jan Harvey
LONDON, April 3 (Reuters) - Gold steadied on Friday as Wall
Street stocks opened down and European equity markets turned
negative after non-farm payrolls data showed the U.S.
unemployment rate soared to its highest since 1983.
The metal was down some 3 percent in earlier trading from
its late Wednesday level as risk aversion receded after a
trickle of better than expected economic data and a
positively-received statement from the G20 leaders' summit.
However the March payrolls data and fresh weakness in stock
markets is turning attention back to gold.
Employers slashed 663,000 U.S. jobs in March and cut
workers' hours to the lowest on record, the numbers showed.
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Spot gold <XAU=> was quoted at $903.90/904.90 an ounce at
1343 GMT from $903.15 late in New York on Thursday, having
earlier touched a low of $894.90.
"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. "But I think
the optimism is a bit 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 indexes slipped at the open, while European
shares edged lower in the wake of the U.S. data. []
The stock markets' sharp rally in recent sessions had
deflected interest from gold, and the metal 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."
HAVEN
On the foreign exchange markets, the dollar rose against
most currencies as the jobs data dulled hopes of a recovery and
boosted the U.S. currency's safe haven appeal. []
Gold is often bought as an alternative investment to the
dollar and typically moves in the opposite direction to it.
However, the relationship has been weakened in recent months as
both assets benefited from risk aversion.
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 $1,154/1,164 an ounce from $1,153.50, while spot
palladium <XPD=> was at $219/224 an ounce from $221.
Spot silver <XAG=> was at $12.84/12.89 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.
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(Editing by Peter Blackburn)
