* Gold snaps 4-day losing streak on higher risk appetite
* Bullion turns higher after falling in tandem with oil
* Gold/silver ratio drops below 38, lowest since 1983
* Coming up: U.S. weekly initial jobless claims Thursday
(Rewrites, updates with comments, market activity, adds link
to graphic)
By Frank Tang
NEW YORK, March 30 (Reuters) - Gold prices turned higher in
choppy trade on Wednesday, snapping a four-session losing
streak, as a broad resurgence of risk appetite prompted buying
of bullion along with other assets ahead of Friday's U.S. jobs
report.
Gold benefited from a weaker dollar against the euro after
a top European Central Bank official said the ECB's interest
rate hikes will be gradual, and world stocks rose more than 1
percent as strong hiring by U.S. private employers boosted both
U.S. and European markets. []
"It seems that risk is flooding back in. It's finding its
way back into precious metals and the stock markets, and that's
driving the trade higher," said Zachary Oxman, managing
director of TrendMax Futures.
Bullion was also boosted by buying ahead of the start of
April and the second quarter, he said.
Gold is used as a safe haven in times of economic and
political uncertainties, but its value also rises in prosperity
as the price of bullion has almost sextupled from $250 an ounce
in 2001.
Spot gold <XAU=> gained 0.4 percent to $1,422 an ounce by
3:33 p.m. EDT (1933 GMT), having earlier touched a high of
$1,430. U.S. gold futures for April delivery <GCJ1> settled up
$7.60 at $1,423.80.
Earlier in the session, gold and oil fell sharply in tandem
after data showed swelling crude inventories. However, both
gold and crude futures were sharply off their lows.
(Graphic: http://link.reuters.com/wyr78r)
Gold futures traded on the New York Mercantile Exchange
were again one of the most actively trading commodity markets,
with volume topping 200,000 lots, one of the heaviest trading
days year to date.
Bullion's failure to capitalize on record highs on recent
strong volume suggested some investors are skeptical about the
metal's investment appeal, analysts said.
"It (higher volume) is showing some of the money in gold
has been taken out and moved to other assets," Fred
Schoenstein, trader at Heraeus Precious Metals Management said.
"Gold's been a great asset over the last year, but why would
you stay in a trade that has performed so well and so long when
there are other markets where you can make money?"
A Reuters poll showed that gold's decade-long rally, which
took the metal to record $1,447.40 an ounce last week, looks
set to plateau in the second quarter as more downside risks for
bullion emerge. []
(Graphic: http://r.reuters.com/ruq78r)
On charts, spot gold must close consecutively higher above
its double-top resistance at $1,445 an ounce for a rise toward
record $1,500 level, said Rick Bensginor, chief market analyst
of Dahlman Rose.
(Graphic: http://link.reuters.com/hus78r)
GOLD/SILVER RATIO HITS 28-YEAR LOW
Silver <XAG=> climbed 0.7 percent to $37.33 an ounce,
sending the gold/silver ratio to below 38, the lowest level
since 1983.
(Graphic: http://link.reuters.com/bas78r)
Daniel Major, an analyst at RBS, said that the price of
silver has been largely driven by technical and momentum
trading rather than the fundamentals.
Industrial demand for silver is set to rise to 665.9
million ounces by 2015 from $487.4 million ounces last year,
metals consultancy GFMS said in a report prepared in
conjunction with the Silver Institute. []
Gold 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.
Investors also await Friday's U.S. nonfarm payrolls report,
which could set the tone for the near-term direction of gold.
Platinum group metals rebounded after a recent sell-off as
production at Japan's major auto plants are interrupted after
the earthquake, tsunami and the subsequent nuclear crisis that
hit the country nearly three weeks ago.
PGM sentiment improved after Nissan Motor Co Ltd <7201.T>
said on Wednesday it would resume normal operations at all its
Japanese plants except one by mid-April.
Platinum <XPT=> gained 2 percent to $1,768.50 an ounce,
while palladium <XPD=> rose 0.3 percent to $750.72.
Prices at 3:33 p.m. EDT (1933 GMT)
LAST/ NET PCT YTD
CLOSE CHG CHG CHG
US gold <GCJ1> 1423.80 7.60 0.5% 0.2%
US silver <SIK1> 37.511 0.524 0.0% 21.2%
US platinum <PLN1> 1774.10 30.00 1.7% -0.2%
US palladium <PAM1> 758.10 5.15 0.7% -5.6%
Gold <XAU=> 1422.00 6.05 0.4% 0.2%
Silver <XAG=> 37.33 0.26 0.7% 21.0%
Platinum <XPT=> 1768.50 34.05 2.0% 0.1%
Palladium <XPD=> 750.72 2.44 0.3% -6.1%
Gold Fix <XAUFIX=> 1425.50 6.50 0.5% 1.1%
Silver Fix <XAGFIX=> 37.53 91.00 2.5% 22.5%
Platinum Fix <XPTFIX=> 1760.00 8.00 0.5% 1.7%
Palladium Fix <XPDFIX=> 757.00 1.00 0.1% -4.3%
(Additional reporting by Jan Harvey in London; Editing by
Marguerita Choy)
