* Gold higher after four sessions of losses
* Prospect of monetary tightening seen in euro zone, U.S.
* Industrial silver demand seen at 665.9 mln oz by 2015
(Updates prices)
By Jan Harvey
LONDON, March 30 (Reuters) - Gold firmed on Wednesday, after
four sessions of losses amid broad support from unrest in the
Middle East and North Africa, but gains were capped by
expectations monetary policy in key regions may tighten.
Spot gold <XAU=> was bid at $1,420.55 an ounce at 1144 GMT,
against $1,415.95 late in New York on Tuesday. U.S. gold futures
for April delivery <GCJ1> rose $4.40 an ounce to $1,420.60.
The precious metal hit a record $1,447.40 an ounce last week
after months of unrest across North Africa and the Middle East,
with violence continuing to simmer in Libya, Bahrain, Syria and
Yemen. []
While this is limiting any correction in the gold price, the
precious metal has struggled to eke out fresh gains as financial
markets digest hints from the euro zone and U.S. authorities
they may be set to tighten historically loose monetary policy.
"Gold players are anxiously waiting for policy signals from
the U.S. and to see what the ECB (European Central Bank)
actually does next week in its monthly meeting," said Credit
Agricole analyst Robin Bhar.
"It would take an extraordinary event for the ECB not to
hike, and in the U.S. tightening rather than keeping this
accommodative bias (is likely). Those two factors do put a
non-interest bearing asset like gold at a disadvantage."
"Geopolitical (risks), elevated oil prices, the debt
situation in the euro zone will continue to provide support, so
there is a floor for gold," he added. "(But) unless any or all
of those factors increase in gravity, it is difficult to see
what trigger from the buy side will push gold back to highs."
On the foreign exchange markets, the euro rose to a 10-month
high versus a broadly weaker yen on expectations that euro zone
interest rates will rise in April, though it eased a touch
versus the dollar <EUR=>. []
LARGEST ETF SEES FRESH OUTFLOW
Investment in products such as gold-backed exchange-traded
funds remained soft, meanwhile, with holdings of the largest,
New York's SPDR Gold Trust <GLD>, slipping around two tonnes on
Tuesday to their lowest in three weeks. []
The fund is heading for its largest quarterly outflow of
bullion since its launch in the first three months of 2011.
Analysts have long feared that significant selling from ETFs
-- which issue securities backed by physical stocks of the metal
-- could flood the market with gold, but so far selling has
easily been balanced by other forms of consumption.
Gold demand to make jewellery, dental fillings and
electronics will jump more than 5 percent this year, the biggest
rise since 2000, metals research and consultant CPM Group said
late on Tuesday. []
Elsewhere, metals consultancy GFMS said in a report prepared
in conjunction with the Silver Institute that industrial demand
for silver was set to rise to 665.9 million ounces by 2015 from
4487.4 million ounces last year. []
"At country level, the Asian region (especially China and
India) will be the growth driver, while industrial nations such
as the U.S. should also register strong demand," said
Commerzbank in a note.
Silver <XAG=> was bid at $37.54 an ounce against $37.07.
Platinum <XPT=> was at $1,742.55 an ounce against $1,734.45,
while palladium <XPD=> was at $751.97 against $748.28.
(Reporting by Jan Harvey; editing by Keiron Henderson)
