* Euro retreats as fears linger over PIIGS; ECB holds rates
* Platinum, palladium target chart resistance
* Coming up: ECB head Jean-Claude Trichet's press conference
(Updates prices)
By Jan Harvey
LONDON, March 4 (Reuters) - Gold was little changed in
Europe on Thursday after the European Central Bank kept interest
rates unchanged at 1.0 percent as expected, with trading subdued
ahead of a news conference by ECB chief Jean-Claude Trichet.
Spot gold <XAU=> was bid at $1,138.55 an ounce at 1321 GMT,
against $1,139.35 late in New York on Wednesday.
Gold rose as high as $1,144.60 an ounce on Wednesday, its
highest level since Jan. 15, as dollar weakness added to fears
over the stability of the euro zone financial system to prompt
buying of gold.
But the single currency's retreat from highs against the
dollar on Thursday is putting the metal back under pressure.
"The pullback in the euro/dollar today is taking a little
wind out of gold's sails," said Societe Generale analyst David
Wilson. "There is still nervousness over the euro area,
particularly with strikes in Portugal over austerity plans."
Fears over the outlook for a number of smaller euro zone
economies -- Portugal, Ireland, Italy, Greece and Spain -- have
helped push the single currency down nearly 5 percent versus the
dollar so far this year.
The euro pared losses after Greece's sale of 10-year bonds
drew solid demand, while investors awaited Trichet's comments.
Focus will be on whether there is any change to the extra
liquidity the ECB has provided for the banking system. []
The ECB is expected to detail the next steps in its gradual
withdrawal from emergency lending after it held interest rates
at a record low of 1.0 percent on Thursday. []
Among other commodities, oil prices steadied to hold near
$81 a barrel as the dollar pared gains, having earlier slipped
as the firmer U.S. unit dragged prices off seven-week highs
after news of another rise in U.S. crude inventories. []
Gold tends to track crude prices, as the metal can be bought
as a hedge against oil-led inflation.
SHARES EDGE UP
On the wider markets, European shares edged up as banks
gained after the Bank of England and the ECB kept rates on hold,
while U.S. stock index futures ticked higher as retailers posted
better-than-expected sales for February. [] []
Asian shares failed to hold on to early gains on Thursday,
slipping lower as worries about Greece and the outlook for the
global economy made investors cautious. []
The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust <GLD>, said its holdings stood at 1,115.511 tonnes as
of March 3, up from 1,111.556 tonnes in the previous business
day. []
The U.S. Mint's gold coin sales fell 17.8 percent in the
first two months of the year to 169,000 ounces from 205,500
ounces in the same period a year earlier, information released
on the mint's website showed. []
On the supply side, Russia's gold lobby said the country's
gold output fell 59 percent in January from the previous month.
Russia is the world's fifth largest gold miner. []
Among other precious metals, spot silver <XAG=> was bid at
$17.27 an ounce against $17.17, platinum <XPT=> was at $1,575 an
ounce against $1,575.50, while palladium <XPD=> was at $455.50
against $446.50.
"Clearance of chart resistance at $1,594 in platinum and
around the $450 area in palladium would open the way to re-test
the January highs, as both metals gain further ground on
increasing investment and industrial demand," said James Moore,
an analyst at TheBullionDesk.com, in a note.
(Editing by James Jukwey)
