* Gold jumps after beating technical resistance below $900
* Investor demand tested as ETF buying stalls
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By Rebekah Curtis and Jan Harvey
LONDON, April 23 (Reuters) - Gold rallied to a three-week
high above $900 an ounce on Thursday as Wall Street equities
extended losses after data showed U.S. existing home sales fell
to a much lower-than-expected annual rate in March.
Falling stocks and ongoing jitters over the health of the
U.S. economy are enhancing the precious metal's appeal as a
haven from risk, while physical demand is picking up in major
consumer India ahead of a key festival, analysts said.
Gold <XAU=> hit a high of $907.10 an ounce in the immediate
wake of the data, its firmest since April 3, and was bid at
$904.50 per ounce at 1502 GMT against $889.15 late in New York
on Wednesday.
U.S. gold futures for June delivery <GCM9> on the COMEX
division of the New York Mercantile Exchange rose $14.70 to
$906.50 an ounce.
"The data is a bit disappointing for the market," said BNP
Paribas analyst Michael Widmer.
"There is still uncertainty. People are asking themselves at
what stage the economy will bottom out," he added. "There is
still safe haven appeal for gold."
U.S. stocks fell on Thursday after data showed existing home
sales fell 3 percent in March to a much lower than expected
annual rate. []
Gold climbed on the news, then jumped after breaking
technical resistance just below $900 an ounce.
Meanwhile the International Monetary Fund on Wednesday
slashed its growth forecasts for every major country and urged
governments to take forceful action to ensure the world
economy's recovery from a severe recession. []
TRACTION
But gold has held between $870-900 in recent sessions,
struggling to gain traction as buying of gold-backed
exchange-traded funds stalled.
Holdings of the world's largest gold ETF, the SPDR Gold
Trust <GLD>, are at 1,105.98 tonnes, having recently seen their
largest outflows since last autumn. []
"For gold to be really moving on the upside you've got to
see more money coming into ETFs to justify that, and that has
not been the case for some weeks now," Simon Weeks, director of
precious metals at the Bank of Nova Scotia, said.
Gold-backed exchange-traded funds saw inflows of 456 tonnes
in the first quarter of 2009, against a total 321 tonnes for the
whole of the previous year, the World Gold Council said on
Thursday. []
A weaker dollar versus the euro also helped to support
bullion, analysts said, as a lower U.S. currency makes gold
cheaper for holders of other currencies. []
Buying from India ahead of the Akshaya Tritya festival on
Monday, an auspicious time for gold buying, is also helping
drive prices higher, analysts said.
Silver <XAG=> tracked gold higher, rising almost 5 percent
to its session peak of $12.86. It was later at $12.74 against
$12.28.
Among other precious metals, platinum <XPT=> was bid at
$1,175.50 an ounce against $1,168.50 and palladium <XPD=> was at
$230.50 an ounce against $230.
Metals consultancy GFMS said in a closely watched report on
Thursday that platinum group metals will take little support
from their supply and demand fundamentals this year, but could
benefit from investment demand if gold climbs. []
The group said it expects platinum to trade in a range of
$900-$1,375 in 2009, and palladium to stay between $170-$325.
(Editing by Keiron Henderson)
