* SPDR hits new high, slver trust holdings stay at record
* Activity subdued due to month-end
* Gold up about 5 pct on quarter
By Chikako Mogi
TOKYO, March 30 (Reuters) - Gold steadied on Monday after
falling 3 percent last week, supported by scepticism about an
economic recovery, but the dollar remained a downside risk.
Stabilising stock markets and the dollar's rise over the
past week after the U.S. government announced measures to clean
toxic assets off banks' balance sheets put a cap on gold
prices, undermining the yellow metal's appeal as a safe haven.
Still, uncertainties over the sustainability of a stock
market rally and the dollar's rise, as well as the global
economic outlook, kept intact investor appetite, resulting in
record holdings of gold-backed securities.
"The stock market is stabilising and investors are stopping
their safe-haven buying of gold," said Ronald Leung, director
of Lee Cheong Gold Dealers in Hong Kong. At the same time,
there was nothing to justify selling of gold because it was not
clear how the economy fares, he said.
Gold <XAU=> was at $921.05 per ounce by 0240 GMT, little
changed from New York's notional close of $922.10. Gold has
held firmly above $900 thanks to buying related to gold-backed
securities.
At current levels, gold is up about 5 percent on the
quarter but 10.6 percent below an all-time high of $1,030.80
hit a year ago. Bullion has recovered about 4 percent from a
six-week low of $882.90 hit on March 18, but is 8 percent off
the 11-month high above $1,000 set in February.
It has been six months since the collapse of Lehman
Brothers, which aggravated the financial crisis, and the global
economy and financial system have yet to show a clear sign of a
turnaround, traders said.
"Unless the economy really starts working and stock markets
rally, and banks start lending and businesses revive, people
will not jump out of the gold market," Leung said.
Trading was subdued due to the month-end and as some
players turned cautious ahead of U.S. nonfarm payrolls data due
later in the week. There were not many expectations for a
meeting later in the week of the G20 group of the world's 20
biggest economies, traders said.
The world's largest gold-backed exchange-traded fund, the
SPDR Gold Trust <GLD>, said holdings rose 2.45 tonnes to a
record 1,127.44 tonnes on March 29. []
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
Tokyo shares <> fell 1.8 percent on Monday as
investors locked in profits from last week's sharp rally. []
The dollar firmed after the euro posted its biggest one-day
fall since early January on Friday. []
Later on Monday, data on British consumer credit and
mortgage lending for February and euro zone March business
climate sentiment will be released.
Prices as of 0250 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 921.65 -0.45 -0.05 4.72
Spot Silver 13.29 0.02 +0.15 17.40
Spot Platinum 1129.00 6.00 +0.53 21.14
Spot Palladium 215.50 -2.00 -0.92 16.80
TOCOM Gold 2926.00 -34.00 -1.15 13.72
13488
TOCOM Platinum 3585.00 -58.00 -1.59 35.18
7031
TOCOM Silver 416.40 -7.00 -1.65 30.41
221
TOCOM Palladium 690.00 -16.00 -2.27 25.45
291
Euro/Dollar 1.3269
Dollar/Yen 97.68
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 Risa Maeda; Editing by Clarence
Fernandez)
