* Stock markets tick up, dollar firms in early trade
* SPDR gold ETF holdings unchanged, Indian demand sluggish
(Updates throughout, changes dateline - pvs TOKYO)
By Jan Harvey
LONDON, April 16 (Reuters) - Gold prices were steady on
Thursday as traders awaited direction from the equity and
currency markets, with sluggish investment and physical demand
providing little support.
Spot gold <XAU=> was bid at $891.00 an ounce at 0846 GMT
from $890.60 late in New York on Wednesday.
The precious metal has traded in a narrow $20 range so far
this week as the market is pulled between conflicting signals on
inflation and the outlook for the stock and currency markets.
Pradeep Unni, senior analyst at Richcomm Global Services in
Dubai, said uncertainty is keeping gold locked in a tight range.
"Investors seem to be waiting for clues from stock markets
and currency markets, but nothing solid is emerging," he said.
"While investment demand continues to be strong in the metal, a
renewed rally in stocks has hampered further flows."
European shares rose early on Thursday, with banks gaining
ahead of financial results from U.S. bank JPMorgan <JPM.N> and
housing data from the United States. []
Asia stocks pulled back from six-month highs on Thursday,
however, after China posted its slowest quarterly growth ever.
[]
As markets have stabilised, gold's appeal as a haven from
risk has diminished. A number of investors who pulled out of
stock markets in favour of gold as equities tumbled are now
moving in the opposite direction, analysts said.
On the currency markets, the dollar firmed a touch versus
the euro as hopes for a speedy economic recovery receded,
pushing investors towards assets seen as safer. []
A stronger dollar usually weighs on gold, which is often
bought as an alternative investment to the U.S. currency.
Investment demand remains soft. The world's largest
gold-backed exchange-traded fund, New York's SPDR Gold Trust
<GLD>, has recorded no fresh inflows in nearly a week.
[]
The trust's holdings have risen less than quarter of a tonne
so far in April, compared to nearly 40 tonnes in the comparable
period a month before.
AUSPICIOUS
Indian jewellery sales continued to pick up on Thursday
ahead of the key Hindu festival of Akshaya Tritya, an auspicious
day for gold buying. However, volumes are "not huge", according
to one Chennai-based wholesaler. []
Jewellery demand in India has slumped in the last year as
prices have risen. Traders say buyers are awaiting further price
falls before making purchases.
"The metal... could look to spend more time in limbo in the
current $865-900 range as increasing physical interest absorbs
pockets of stale liquidation, or until a clearer picture of the
world economies is seen," said James Moore, an analyst at
TheBullionDesk.com.
Among other precious metals, spot platinum <XPT=> was bid at
$1,219 an ounce against $1,216.50, while spot palladium <XPD=>
was bid at $235 an ounce against $234.50.
Platinum has steadied since hitting a 6-1/2 month high on
Monday on hopes the downturn in the global car industry may be
easing, which boosted buying of the metal used in autocatalysts.
It is awaiting direction from the equity markets, and from gold.
"For the remainder of the week, (platinum) is likely to
track global equity markets, in more narrow trading," said VTB
Capital analyst Andrey Kryuchenkov in a note. "More
consolidation is in store for the metal."
Rhodium <RHOD-LON> climbed another $50 an ounce or 4 percent
to $1,300 an ounce, its highest level since early December,
building on the previous session's 9 percent gains.
The metal is benefiting from rising platinum prices and
hopes for better car demand.
Silver <XAG=> was bid at $12.74 an ounce against $12.75.
(Reporting by Jan Harvey; Editing by Keiron Henderson)
