* SPDR Gold Trust stays at record high
* Dollar strengthens against euro
By Rebekah Curtis
LONDON, March 27 (Reuters) - Gold dipped on Friday, as
precious metals came under pressure from a strengthening dollar
and investors questioned bullion's safe-haven appeal after
recent U.S. steps to stem an economic crisis.
Gold <XAU=> was at $924.3/925.5 per ounce at 1502 GMT,
dipping from $933.05 late in New York on Thursday.
The dollar rose, with the euro extending declines to fall
more than 2 percent against the U.S. currency as Wall Street
fell further. [] [].
A higher U.S. currency makes metals priced in dollars more
expensive for holders of other currencies.
"It's all dollar related," said David Thurtell, an analyst
at Citi, adding that he expected gold to drift lower.
"Gold's going to track between $875 an ounce and $950 in the
next 18 months."
Gold was pressured earlier in the session by overnight
strength in U.S. equities, after the Nasdaq stock index in New
York <> moved into positive territory for the year to date
on Thursday.
U.S. and European stock markets dropped on Friday, but
analysts said that recent steps by the U.S. government to
bolster the ailing economy may encourage investors to brave
riskier assets such as equities.
Nick Moore, a commodity strategist at RBS Global Banking &
Markets, 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," he said. "I don't think you'd be an April fool for
buying gold."
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.
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 $13.29/13.35 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 $1,130.5/1,140.5 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 $213/218 from $221.
(Additional reporting by Chikako Mogi in Tokyo; editing by
Anthony Barker)
