* U.S. equities fall at the open on recession fears
* Oil, base metals post losses on weak demand outlook
* Silver, platinum, rhodium slip as traders fret over demand
(Recasts, updates throughout, adds comment)
By Jan Harvey
LONDON, Oct 15 (Reuters) - Gold erased its earlier 1 percent
gains to trade little changed on Wednesday from the previous
session as a further decline in equities sparked selling of
commodities and the dollar firmed a touch against the euro.
Silver fell 5 percent, platinum nearly 5 percent and rhodium
more than 10 percent as fears over the outlook for the global
economy added to the perception demand will fall for industrial
precious metals that also have an industrial use.
Spot gold <XAU=> was at $835.80/838.30 an ounce at 1344 GMT,
little changed from $835.25 in late New York trade on Tuesday.
Earlier it touched a session high of $848.30.
"We have seen an ebbing away of safe-haven flows, and there
is some profit taking coming in," said Calyon analyst Robin
Bhar.
"The dollar is better bid today as well, and the oil price
has fallen further. The whole commodities sector has taken a bit
of a knock."
The dollar edged up against the euro, denting gold's appeal
as an alternative investment to the currency. []
Commodities such as oil, grains, copper and aluminium sold
off as concerns over the global economic outlook fanned fears
demand will fall.
U.S. stocks fell at the open, mirroring earlier losses in
Europe and Asia, as investors feared efforts to ease the credit
crisis would not avert a recession. []
European shares slipped earlier in the day, breaking a
two-day winning streak, as the euphoria over bold government
action to arrest the financial sector meltdown dissipated.
[]
Weakness in the equity markets typically benefits gold, as
traders move from investment in volatile stocks and shares to
so-called 'safer' assets such as bullion.
However, uncertainty surrounding the see-sawing equity
markets have led to choppy trading in gold.
Gold was pressured by a softening in the oil price, with
crude dipping more than $3 at its lowest point on expectations
economic weakness will further cut fuel demand. []
Falling crude prices typically weigh on gold, which is often
bought as a hedge against oil-led inflation.
PLATINUM, RHODIUM SLIDE
Among other precious metals, spot silver <XAG=> tumbled 5
percent to a session low of $10.15 an ounce, before settling
back at $10.29/10.37 an ounce against $10.95.
The platinum group metals also fell, with platinum slipping
more than 3 percent and rhodium falling more than 10 percent, as
investors worried over the demand outlook.
Rhodium <RHOD-LON> shed $350 an ounce as investors sold the
precious metal on fears demand from carmakers would fall, and to
raise cash to cover losses on other markets. It was quoted at
$2,850 an ounce against $3,200 an ounce on Tuesday.
Auto manufacturers' association ACEA said European new
vehicle sales fell 8.2 percent in September, and U.S. car sales
have also fallen, recent figures suggest. []
"Car sales are looking grim from everywhere, really, and
that is the major home for the majority of rhodium," said one
British-based trader.
Spot platinum <XPT=> fell to $974/994 an ounce against
$1,017.50 late in New York on Tuesday.
The world's largest producer of the white metal, Anglo
Platinum <AMSJ.J> told Reuters that it does not plan to trim
metal output despite low prices, which it expects to rebound as
fundamentals return to the fore. []
Spot palladium <XPD=> was quoted at $193.50/201.50 an ounce
against $195.
(Reporting by Jan Harvey; editing by Michael Roddy)
