* Gold up after climbing 1 percent in Asia as equities slid
* Dollar tumbles ahead of U.S. non-farm payrolls data
* SPDR ETF holdings static, iShares sees outflow
(Updates throughout, previous TOKYO)
By Jan Harvey
LONDON, March 6 (Reuters) - Gold rose in Europe on Friday,
building on the previous session's near 3 percent gains, as Wall
Street's slide to 12-year lows curbed appetite for equities and
the dollar tumbled ahead of U.S. jobs data later this session.
Investors spooked by volatility in other assets such as
currencies and equities are buying the metal as a safe store of
value, analysts said.
Spot gold <XAU=> climbed to $938.80/939.80 an ounce at 1014
GMT from $932.00 late in New York on Thursday. Earlier it
touched a high of $941.90.
"Gold is considered in the first instance at the moment an
insurance premium and a safe haven," said Commerzbank analyst
Eugen Weinberg. "It is the equity markets and risk aversion that
are moving the market."
The precious metal rose on Thursday as U.S. stocks tumbled
to 12-year lows after General Motors <GM.N> said it was facing
potential bankruptcy, and extended its gains as stocks slid in
Asia.
World stocks struck a six-year low <.MIWO00000PUS> as
Japan's Nikkei average <> fell 3 percent in early trade.
European shares opened a touch higher, but sentiment remains
cautious.
Traders are awaiting key U.S. non-farm payrolls data due for
release at 1330 GMT for clues as to the next direction of the
markets. "Disappointing data could mean more pressure for U.S.
equity markets," said Standard Bank analyst Manqoba Madinane.
Economists expect the payrolls report will show the United
States shed 648,000 jobs in February, compared to 598,000 in
January. The unemployment rate is expected to have risen to 7.9
percent from 7.6 percent.
The dollar tumbled more than 1 percent against a basket of
currencies, reversing recent gains, as investors braced for the
data. Talk that the economy could have lost up to 1 million jobs
had hit the U.S. currency hard, traders said. []
SCEPTICAL
But analysts remain sceptical about gold's ability to extend
its gains. Commerzbank's Weinberg said gold's weak underlying
fundamentals, with jewellery demand falling sharply and scrap
supply picking up, pointed to a much lower price.
Demand for gold in India, the world's largest market for the
precious metal, remained slack as prices rose for a second day
on Friday, while selling of scrap stepped up as gold holders
cashed in after the recent price gains.
"There are no hopes of traders buying," said Haresh Acharya,
head of the bullion desk at Parker Agrochem Exports in
Ahmedabad. "Sellers are coming in in huge numbers."
Buying of gold-backed exchange traded funds was also
stagnant, with holdings of New York's SPDR Gold Trust <GLD>,
static for a fifth consecutive session.
Among other precious metals, spot silver <XAG=> tracked gold
higher to $13.42/13.49 an ounce from $13.22. Earlier it touched
a one-week high of $13.49.
Holdings of the world's largest silver ETF, the iShares
Silver Trust <SLV>, declined by 82.8 tonnes on Thursday, and are
down 282.1 tonnes or 3 percent from the record level they held
last Thursday. []
Spot platinum <XPT=> firmed to $1,070/1,080 an ounce from
$1,058.50. Prices ticked higher on Thursday despite the
announcement from General Motors and a spate of other
price-negative data.
"That platinum remained comfortably above $1,000 an ounce
despite ostensibly bearish news leads us to believe that the
market is building a base from which to trade higher," said HSBC
analyst James Steel.
Spot palladium <XPD=> rose to $200/205 an ounce from $196,
having earlier reached a 10-day high of $201.
(Editing by James Jukwey)
