* Stock markets turn positive in U.S., Europe
* Euro strengthens to session high versus the dollar
* Chinese platinum imports rise in March
(Updates prices, adds comment)
By Jan Harvey
LONDON, April 22 (Reuters) - Gold was firmer on Wednesday,
helped by the dollar's slip to session lows against the euro,
but retreated from earlier highs as stock markets turned
positive in Europe and the U.S.
Spot gold <XAU=> was bid at $885.30 an ounce at 1440 GMT,
against $882.25 an ounce late in New York on Tuesday. Earlier it
rose as high as $889.40.
U.S. gold futures for June delivery <GCM9> on the COMEX
division of the New York Mercantile Exchange rose $4.90 to
$887.00 an ounce.
U.S. stocks rose, reversing earlier losses, as shares of big
manufacturers such as Caterpillar <CAT.N> and Boeing
<BA.N>jumped. They had declined earlier in the session after
Morgan Stanley <MS.N> reported a quarterly loss. []
Gold is holding impressively, considering U.S. equities have
rebounded, said Citi analyst David Thurtell.
"The dollar has declined, which should be helping gold," he
added.
The euro extended gains versus the dollar to session highs
as stocks on Wall Street rebounded from losses. A firmer dollar
typically weighs on gold, which is often bought as an
alternative asset to the U.S. currency. []
Elsewhere an uptick in physical demand for the metal in Asia
ahead of the Akshaya Tritya festival on April 27 -- an
auspicious time for gold buying -- is also helping support
prices.
"We sold around 100 kgs this morning," said a dealer with a
private bank in Mumbai. Gold imports in India have also picked
up this month after an extremely slow period at the beginning of
2009. []
Investor demand remained relatively sluggish, however.
Holdings of the SPDR Gold Trust <GLD>, the world's largest
gold-backed exchange-traded fund, were steady on Tuesday from
the previous day.
DECLINE
The trust's holdings have declined 19.01 tonnes in the last
four weeks, compared with a rise of 96.01 tonnes in the
preceding four weeks.
"The 21.7 tonnes in ETF outflows that were made on Thursday
and Friday... will counteract support from the predicted 30
tonnes in imports to India," said MF Global in a note.
Inflows into gold-backed ETFs jumped to an all-time high in
the first quarter of this year, the World Gold Council said on
Wednesday. []
Among other precious metals, spot platinum <XPT=> was bid at
$1,170 an ounce against $1,152.50, while palladium <XPD=> was
bid at $230 an ounce, up from $222.
The UK government announced it will implement a car
scrapping scheme similar to the 'cash-for-clunkers' initiatives
already in place in countries such as Germany, which have
boosted car sales there. []
Around half of platinum is used by the automotive industry.
Chinese imports data released on Wednesday showed China
imported 3,566 kilograms of platinum in March, up more than 35
percent from a year before. []
The figures reflect a rise in platinum jewellery buying in
China at the beginning of the year, dealers said, with jewellers
taking advantage of lower prices to rebuild stocks of the metal.
"The market is obviously excited about China's net purchases
of platinum which are running considerably above year earlier
levels," JPMorgan said in a note.
Spot silver <XAG=> was bid at $12.26 an ounce against
$11.99, tracking gains in gold.
(Reporting by Jan Harvey; Editing by Peter Blackburn)
