* Gold edges up on weak dollar, bullish technicals
* Could test $900/oz but may be capped by further stock
gains
* SPDR Gold Trust <GLD> holdings unchanged at record
By Risa Maeda
TOKYO, April 14 (Reuters) - Spot gold edged up on Tuesday,
supported by a weakening dollar and bullish technical views,
but the yellow metal looked capped at $900 per ounce a day
after failing to break above that level.
Investors were watching stock market moves to gauge risk
appetite as markets reopened after the Easter holiday.
Spot gold <XAU=> was trading at $895.70 per ounce, up 0.4
percent from New York's notional close of $892.05 on Monday,
when it rose as high as $899.35.
"The market overall is very quiet just because of the
Easter holiday season," said Louis Lok, a senior dealer at Bank
of China in Hong Kong.
But he said bullion could test $900 again after European
participants come back from the long holiday weekend, given
solid support at $880 per ounce and the weakness in the dollar,
amid a growing number of bright spots in the global economy.
On Tuesday, increasing risk appetite helped drive the
dollar and yen down while the euro and the Australian and New
Zealand dollars rose, with optimism about China's recovery
prospects helping the commodity currencies. []
"Gold now trades above a 100-day moving average. Staying
above that level suggests that the market is stabilising after
a two-week sell-off," Lok said.
Gold's downside has been supported by seasonal demand from
India, the world's largest consumer, which is preparing for the
Akshaya Tritiya festival on April 27, when Hindus, particularly
in the south, buy gold to invoke prosperity.
Lower gold prices spurred buying in India ahead of the
festive season, although low volumes suggested some consumers
were waiting for further price declines. []
But further gains in stock markets could put a weight on
gold, traders said.
"If earnings at U.S. banks are good enough to contain
worries about the sector, that would lift stocks higher. That's
negative for gold," said a manager at a Japanese trading
company.
Markets are waiting to see how U.S. banks fared in the
first quarter, looking for signs the financial sector may be
starting to stabilise, while news that Goldman Sachs <GS.N>
posted a higher-than-expected $1.7 bln profit lifted sentiment.
[]
Spot platinum <XPT=> stood at $1,222 per ounce. On Monday
it hit a session high of $1,244, the highest since Sept. 23, as
buying picked up amid speculation that investment demand for
the white metal may catch up with that of gold.
The world's largest gold-backed exchange-traded fund, the
SPDR Gold Trust <GLD>, said its holdings by April 13 were
unchanged at a record 1,127.68 tonnes, a level first reached on
April 9. []
Precious metals prices at 0306 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 896.00 3.95 +0.44 7.60
Spot Silver 12.73 0.02 +0.16 -13.81
Spot Platinum 1222.00 -14.50 -1.17 -19.61
Spot Palladium 237.00 0.00 +0.00 -35.60
TOCOM Gold 2886.00 0.00 +0.00 -5.69
16087
TOCOM Platinum 3918.00 -69.00 -1.73 -26.62
18336
TOCOM Silver 405.70 4.10 +1.02 -25.01
234
TOCOM Palladium 772.00 -9.00 -1.15 -42.86
307
Euro/Dollar 1.3317
Dollar/Yen 99.76
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Additional reporting by Chikako Mogi)
(Editing by Clarence Fernandez)
