* SPDR holdings unchanged at record 1,127.44 tonnes
* Strong support at $900 expected to hold
* Eyes on G20, ECB rate decision
(Updates prices, background)
By Pratima Desai
LONDON, March 31 (Reuters) - Gold prices held firm on
Tuesday, but easing worries about financial markets, a stock
market rally and a stronger dollar were expected to undermine
sentiment ahead of a meeting of G20 leaders.
Also weighing on sentiment was news that India, the world's
largest market for gold, did not import any for the second month
running in March. []
Spot gold <XAU=> was at $916.90/918.10 an ounce at 1454 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.
Bullion moved in volatile trade, taking its cue from the
currency markets, where the euro <EUR=> rose against the dollar,
but pared some of its gains after weak U.S. housing data. []
But the U.S. currency is expected to hold near two-week
highs seen on Monday, denting the upside for bullion as a higher
greenback 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. []
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. []
INDIAN SCRAP
Analysts expected the $900 an ounce level to hold and said
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. []
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. []
The Bombay Bullion Association told Reuters India did not
import any gold in February and March. In the same two months
last year it imported 23 and 21 tonnes respectively.
Spot silver <XAG=> was $13.04/13.11 an ounce from $13.03 on
Monday, palladium <XPD=> at $213.50/218.50 from $213.50 and
platinum <XPT=> at $1,119.50/1,129.50 from $1,112.
Autocatalyst material platinum was bolstered by hopes that
the worst could be over for the auto industry in Europe.
But the metal could come under further pressure if the auto
industry in the United States does not receive the help it says
it needs. []
(Editing by James Jukwey)
