PRECIOUS-Gold firm, but dollar could undermine sentiment

                                
 * SPDR holdings unchanged at record 1,127.44 tonnes
                                
 * Strong support at $900 expected to hold
                                
 * Eyes on G20, ECB rate decision

 (Recasts, adds comment/detail PVS Tokyo)
                                
 By Pratima Desai
                                
 LONDON, March 31 (Reuters) - Gold held firm on Tuesday, but
was expected to come under pressure from a generally stronger
dollar and easing worries about financial markets ahead of a
meeting of G20 leaders.
                                
 Spot gold <XAU=> was $917.85/918.75 an ounce at 0915 GMT
from $916.30 late in New York on Monday. The precious metal is
up more than 4 percent since the end of last year, but down
about 9 percent since an 11-month high above $1,000 last month.
                                
 The dollar was softer against the euro, but losses were seen
limited because of S&P downgrades of Ireland and Hungary. It is
expected to hold near two-week highs seen on Monday. [USD/]
                                
 A stronger U.S. currency makes metals priced in dollars more
expensive for holders of other currencies.
                                
 "We've seen this week the dollar generally strengthening
which is depressing gold prices," Daniel Smith, and analyst at
Standard Chartered, said. "ETF (exchange traded fund) holdings
are going sideways."
                                
 Investors use gold as a hedge against financial uncertainty,
but that seems to be abating. Some selling on the back of a
stronger tone on stock markets is weighing on gold prices. [.EU]
                                
 The world's largest gold-backed exchange-traded fund, the
SPDR Gold Trust <GLD>, said holdings stayed unchanged at a record
1,127.44 tonnes as of March 30, a level first reached on March
29. [GOL/SPDR]
                                
 
                                
 INDIAN SCRAP
                                
 Analysts expect the $900 an ounce level to hold and say even
though investment demand is slipping, it will come back as
markets start to fret about price pressures in the pipeline.
                                
 "Month and quarter-end book squaring are likely to dominate
today's trade," TheBullionDesk.com said in a note.
                                
 "However players will remain cautious ahead of this week's
G20 meeting and European Central Bank's rate decision with gold
likely to remain volatile within the recent $900-965 range."
                                
 Leaders of the Group of 20 leading developed and developing
countries meet to discuss ways out of the global crisis on
Thursday, when the ECB also makes a decision on whether to cut
euro zone interest rates. [ID:nLU735228]
                                
 A cut could further weigh on the euro, boost the dollar and
undermine sentiment in the gold market, analysts said.
                                
 Another negative for gold is the amount of scrap coming into
the physical market.
                                
 "There are some reports out that India has actually become a
net exporter of gold. People are saying it is coming out in the
form of coins," Smith said. [ID:nBOM466963]
                                
 Spot silver <XAG=> was $13.06/13.12 an ounce from $13.03 on
Monday, palladium <XPD=> at $212/217 from $213.50 and platinum
<XPT=> $1,118/1,128.
                                
 Precious industrial metals were following gold's lead, but
the dire demand outlook is expected to cap prices.
                                
 Autocatalyst material platinum in particular could see large
losses if the auto industry in the United States does not
receive the help it says it needs. [ID:nN29306463]
 (Reporting by Pratima Desai; editing by Sue Thomas)