* Dollar steady, stocks ease on caution ahead of U.S. data
* Largest gold, silver ETFs post fresh inflows on Wednesday
* Carmakers post weakest U.S. August sales in 27 years
(Updates throughout, changes dateline, pvs SHANGHAI)
By Jan Harvey
LONDON, Sept 2 (Reuters) - Gold rose in Europe on Thursday
as investors remained cautious about riskier assets ahead of key
U.S. data, while a rise in holdings of the main gold
exchange-traded fund demonstrated an appetite for bullion.
Spot gold <XAU=> was bid at $1,248.05 an ounce at 0854 GMT,
against $1,243.50 late in New York on Wednesday. U.S. gold
futures for December delivery <GCZ0> rose $1.90 to $1,250.00.
The precious metal on Wednesday climbed to a two-month high
at $1,254.65 an ounce as analysts cited fears of a U.S. economic
slowdown that could translate to further quantitative easing by
the Federal Reserve.
It later eased after better-than-expected U.S. manufacturing
data lifted the appetite for assets seen as higher risk, but
prices have proved resilient as fund buyers bet that the
precious metal still has further to rise.
"As long as investors remain optimistic about the prospects
for gold, it is going to remain well supported," said Peter
Fertig, a consultant with Quantitative Commodity Research.
The world's largest gold-backed ETF, New York's SPDR Gold
Trust <GLD.P>, said its holdings rose to 1,304.028 tonnes on
Sept. 1 from 1,302.508 tonnes the day before, having climbed in
August after retreating in July. []
Investors tend to favour physically backed bullion products
as a haven from risk in times of economic or financial market
uncertainty, analysts said.
"Monthly ETF inflows turned positive in August; these need
to accelerate for gold to overcome potential scrap supply at
these prices and rise sustainably through $1,250," Swiss bank
UBS noted in a daily report.
The dollar and yen recovered losses on Thursday as risk
appetite was tempered ahead of a European Central Bank policy
meeting later in the day and U.S. jobs data on Friday. []
DATA EYED
On the wider markets, European shares slipped, after making
their biggest daily surge since May on Wednesday, on caution
ahead of the ECB interest rate decision and pending U.S. home
sales figures. []
The home sales data, due at 1400 GMT, will be closely
watched, along with reports on productivity, jobs and factory
orders. Investors are awaiting key U.S. non-farm payrolls
numbers due Friday.
"We remain positive on gold with still-strong investment
interest in the yellow metal (and) upbeat underlying physical
demand fundamentals as we enter the autumn months," said VTB
Capital analyst Andrey Kryuchenkov in a note.
"More data out today also with the ECB interest rate
statement, while U.S. non-farm payrolls will be in particular
focus at the end of the week."
Among other commodities, oil was steady near $74 as
investors turned their attention to the forthcoming U.S. data,
following gains of almost 3 percent a day earlier after positive
manufacturing data lifted spirits across markets. []
Silver <XAG=> rose 0.7 percent to $19.45 an ounce against
$19.32. The ratio of gold to silver -- or how many ounces of
silver are needed to buy an ounce of gold -- fell to its lowest
in 3-1/2 months at 64.29.
Holdings of the largest silver-backed ETF, the iShares
Silver Trust <SLV>, rose 53.27 tonnes on Wednesday, their
largest one-day rise since May 13. []
Elsewhere, platinum rose to $1,533 an ounce from $1,528,
while palladium <XPD=> climbed to $517.50 an ounce from $516.
Gains in both have been constrained by uncertainty over demand.
Automakers, the main consumers of platinum group metals,
posted their weakest U.S. August sales in 27 years, underscoring
uncertainty about the strength of the recovery in the world's
largest economy. []
(Reporting by Jan Harvey; Editing by Jane Baird)
