* Gold pressured as dollar firms on risk aversion
* Equities slide on fears flu pandemic could hit economy
* Worries about US auto industry weigh on platinum, gold
(Recasts, updates with quotes, closing prices, adds NEW YORK
to dateline)
By Frank Tang and Jan Harvey
NEW YORK/LONDON, April 27 (Reuters) - Gold fell on Monday
as a higher dollar prompted profit taking, but losses were
capped as fears of a flu pandemic took a toll on equities and
helped underpin bullion's appeal as a hedge against risk.
Gold and platinum group metals were also pressured by a
cloudy future for U.S. automakers after the CEO of General
Motors said the company would file for bankruptcy protection if
its plan to slash its debts faltered. []
"The market is pulling back because we rallied so strongly
over $900 last week. And the poor performance of platinum is
weighing on gold also because of the uncertain auto situation,"
said James Steel, chief commodities analyst at HSBC.
Spot gold <XAU=> was at $907.60 an ounce at 2:44 p.m. EDT
(1844 GMT), down 0.4 percent from its late Friday quote $911.10
in New York.
U.S. gold futures for June delivery <GCM9> settled down
$5.90 at $908.20 an ounce on the COMEX division of New York
Mercantile Exchange.
World stocks tumbled on Monday after seven weeks of gains,
while oil and the euro fell sharply, as markets fretted over
the potential economic impact of the spreading swine flu that
has killed more than 100 people in Mexico. []
Saxo Bank senior manager Ole Hansen said traders would
watch how the wider markets reacted to the prospect of a flu
outbreak.
"If there is some worry that this will prolong the slump,
or will increase the difficulties of the economy returning to
some kind of shape...that might have an impact on gold," Hansen
said.
The precious metal has been underpinned by technical
factors after breaking above $900 an ounce last week. Gold,
however, has failed to break upward through a level of
resistance, seen by analysts of past price movements at $918.50
an ounce.
Gold broke through $900 late last week and was boosted on
Friday by news that China has lifted its gold reserves by three
quarters to 1,054 tonnes, against 600 tonnes at the time of its
last report in 2003.
Gold was also pressured by a higher dollar due to rising
risk aversion. A stronger dollar typically weighs on gold.
GOLD BUYING SLOWS
Dubai's gold imports in the first quarter of the year grew
15 percent from a year earlier, according to the Dubai World
Group. However, gold sales there fell 40-60 percent in the
first quarter compared with the final quarter of 2008.
Gold buying in the world's biggest gold consumer, India,
rose ahead of the wedding season there but remains sharply down
year-on-year as high prices and the economic slowdown dents
consumers' interest in jewelry. []
Among other precious metals, spot platinum <XPT=> at
$1,136.50 an ounce, down 3.2 percent from its late Friday quote
of $1,173.50, while spot palladium <XPD=> was at $224.00 an
ounce, down 3.0 percent from its previous finish of $231.
Rhodium <RHOD-LON> has fallen $175 since Thursday to trade
at $1,350. Platinum group metals, which are mainly used as
autocatalyst to clean exhaust fumes from the tailpipes of
vehicles, have suffered from worries about the auto industry.
Silver <XAG=> was at $12.92 an ounce, up 0.6 percent from
its previous finish $12.84. The metal rose 3 percent to a near
four-week high of $13.20 earlier, but is vulnerable to a
correction in gold, analysts said.
(Additional reporting by Rebekah Curtis in London; Editing
by David Gregorio)
