PRECIOUS-Gold falls as dollar rises; ETF holdings dip

                                
 * Gold extends fall as equities hold firm
                                
 * SPDR holdings edge down 0.31 tonnes from record high
 
(Updates prices, adds Bernanke testimony)
                                
 By Rebekah Curtis
                                
 LONDON, March 24 (Reuters) - Gold slipped on Tuesday,
pressured by a rising dollar and a firmer tone on equity
markets, but analysts said inflationary concerns would underpin
bullion's safe-haven appeal.
                                
 Gold <XAU=> was at $919/921 an ounce at 1242 GMT, down from
$937.15 late in New York on Monday, when it fell more than 1
percent as investors moved away from safe-haven investments.
                                
 World stocks hit five-week highs on Monday as investors
pocketed riskier assets on growing optimism that a U.S. plan to
purge toxic assets from the balance sheet of banks could ease
the misery of the financial sector. [ID:nSP429491]
                                
 "Sentiment (on gold) is a bit weaker off a perceived
improvement in other forms of asset classes," said Michael
Khosrowpour, an analyst at Triland Metals, pointing to overnight
gains in stock markets and gains in the dollar.
                                
 The U.S. plan helped boost Japan's Nikkei average <.N225> to
a 2-1/2 month closing high on Tuesday. [.T] But European stocks
dipped, breaking a three-day winning streak after euro zone and
UK macro data showed job losses and higher inflation. [.EU]
                                
 Traders said markets were watching out for testimony before
Congress by Fed Chairman Ben Bernanke and U.S. Treasury
Secretary Geithner at 1400 GMT.
                                
 Analysts said fears of inflation fanned by the Federal
Reserve's plans to buy long-dated U.S. Treasuries still lingered
even if they had eased a little.
                                
 "Gold will probably continue to follow inflation
expectations in the near term although remains vulnerable to
improved risk asset sentiment," UBS said in a note.
                                
 Analysts also said a higher dollar was putting pressure on
gold prices. [USD/] 
                                
 Gold is often viewed as an alternative to holding the
dollar, and often falls when the dollar rises because it makes
metals priced in the U.S. currency more expensive for holders of
other currencies.
                                
 Bullion has recovered ground from a six-week low of $882.90
marked on March 18 but still has some way to go before
approaching the 11-month high above $1,000 reached in February.
                                
 It soared to an all-time peak of $1,030.80 in March 2008.
                                
 Receding interest in gold was also evident in the holdings
of gold-backed exchange traded funds.
                                
 The world's largest gold-backed ETF, the SPDR Gold Trust
<GLD>, said its holdings nudged down about a third of a tonne to
1,114.29 tonnes on March 23 from a record high 1,114.60 tonnes.
[GOL/SPDR]
                                
 For details on gold holdings of the ETF listed in New York
and co-listed on other exchanges, click on:
 http://www.exchangetradedgold.com/iframes/usa.php
                                
 For a graphic, click on:
 https://customers.reuters.com/d/graphics/MKTS_SPDRGLD240309.jpg
                                
 Silver <XAG=> was at $13.36/13.42 from $13.63, platinum
<XPT=> was at $1,109/1,119 from $1,121, and palladium <XPD=> was
at $203/208 versus $207.5.
 (Additional reporting by Pratima Desai; editing by Anthony
Barker)