* Underpinned by fall in dollar versus euro
* SPDR Gold Trust <XAUEXT-NYS-TT> holdings unchanged
By Risa Maeda
TOKYO, April 30 (Reuters) - Gold was little changed on
Thursday, hovering below $900 per ounce as extended gains in
equities markets lessened the allure of the alternative asset,
but a fall in the dollar versus the euro limited losses.
World share prices struck a four-month peak on Thursday,
powered by gains in Asia, as investors took heart from a record
drop in U.S. business inventories and surprisingly robust
consumer spending. []
Activity was limited with many Asian markets to close
on Friday for a public holiday, while Japanese markets will closed
for national holidays on May 4-6.
"Gold keeps hovering slightly below $900 although the market
has found there is no strong buying interest at or below
$890. But so far, neither large-lot selling nor buying has been
detected," said Kaname Gokon, deputy general manager at Okato
Shoji Co's research section.
Spot gold <XAU=> was at $897 per ounce at 0641 GMT, down
0.1 percent from New York's notional close of $897.60.
U.S. gold futures for June delivery <GCM9> were at $899.7 per
ounce, down 0.1 percent from Wednesday's settlement at $900.50.
Gold bullion hit a four-week high of $918.25 on Monday as
equities markets fell, due partly to fears a swine flu outbreak
could hurt the economy, and on hopes China would continue to buy
gold to increase reserves.
Profit-taking has since capped the precious metal, but a
reversal in the dollar's jump on safe-haven buying earlier this
week is providing support, traders said.
For the month of April, spot gold fell 2.2 percent, marking
the second-consecutive monthly fall and reflecting a rise in the
dollar versus the euro in the past two months.
A firmer dollar typically weighs on gold.
"The euro/dollar rate is the first thing setting a trend for
now," said Tatsufumi Okoshi, a senior economist at Nomura
Securities Co.
The euro rose 0.9 percent to $1.3370 <EUR=> on Thursday,
extending gains made the previous day after the Federal Reserve
made no changes in its monetary policy but offered a less bleak
outlook on the U.S. economy. []
Another positive factor for gold was data showing seasonal
gold buying by India, the world's largest gold consumer, stronger
than an earlier estimate.
Indians bought 45 tonnes of gold during this year's Akshaya
Tritiya festival, down 8 percent from last year, the World Gold
Council said on Thursday, but much higher than estimates by a
local trade body and jewellers. []
Investors are watching for a clearer picture of prospects for
the global economy, Nomura's Okoshi said.
"There are signs that stimulus spending by the Chinese and
U.S. governments has had a positive effect on demand, but the
impact of stimulus by other governments is yet to be seen," he
said.
Chart-driven activity could increase price volatility, in
particular when volume is low, some traders said.
Okato Shoji's Gokon said stop-loss selling could be triggered
if spot gold falls to or below $885, while stop-loss buying could
push it higher if it rises to or above $905.
The world's largest gold-backed exchange-traded fund, the
SPDR Gold Trust <GLD>, said holdings stayed at 1,104.45 tonnes as
of April 29, unchanged since April 23. []
Precious metals prices at 0654 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 899.40 1.80 +0.20 8.01
Spot Silver 12.78 0.02 +0.16 -13.47
Spot Platinum 1103.00 8.50 +0.78 -27.43
Spot Palladium 221.00 2.50 +1.14 -39.95
TOCOM Gold 2829.00 46.00 +1.65 -7.55 26273
TOCOM Platinum 3472.00 91.00 +2.69 -34.97 19847
TOCOM Silver 399.60 10.50 +2.70 -26.14 338
TOCOM Palladium 706.00 17.00 +2.47 -47.74 777
Euro/Dollar 1.3369
Dollar/Yen 97.43
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Additional reporting by Miho Yoshikawa)
