* Rise in gold trust holdings lends some support
* Stocks rise, euro holds onto gains
(Updates comments and prices)
By Humeyra Pamuk
LONDON, May 28 (Reuters) - Gold steadied on Friday, but the
return of risk appetite in global markets curbed its safe-haven
appeal and capped upside, while it boosted palladium to its
highest in over a week.
World equities rose for the third day running and the euro
extended gains against the dollar as investors refrained from
betting on further trouble in the euro zone's debt crisis ahead
of a holiday in major markets. [] []
Spot gold <XAU=> was quoted at $1,209.65 an ounce at 1321
GMT versus $1,211.10 an ounce late in New York on Thursday. The
safe-haven rally had driven it to a record high of $1,248.95 an
ounce two weeks ago.
"Definitely risk aversion is less than it was at the start
of the week, which I think has taken the edge slightly off
gold," said analyst Walter De Wet at Standard Bank.
Fears of a crisis in the eurozone that could derail the
region's already-fragile economic recovery sparked a sell-off
across other commodities earlier this week but boosted gold, as
investors dumped riskier asset in search for safety.
But still, analysts expect gold to hold onto its recent
gains. "Because it's the end of the month, there's always
positioning around and generally people want a good end to the
month. I would be surprised if gold would come down
substantially," he said.
Bullion also found modest fundamental support from a rise in
holdings of the world's largest gold-backed exchange-traded
fund, the SPDR Gold Trust <GLD>, to a new record, showing global
appetite for less risky investments continues. []
Benchmark U.S. gold futures for June delivery <GCM0> on the
COMEX division of the New York Mercantile Exchange was down by
$2.2 at $1,209.4 an ounce.
India's gold imports fell an annual 39 percent in May, as
record prices hit demand in the world's top consumer at a time
when sales were expected to rise because of a key Hindu
festival. []
FOCUS ON PGMS
Traders will continue to monitor macroeconomic data from the
United States, where consumer spending was unexpectedly flat in
April, but the largest gain in real disposable income in nearly
a year offered hope spending will trend higher in the second
quarter. []
"The focus more perhaps is on the white metals; platinum and
palladium rather than gold," said Nick Moore, global head of
metals strategy at RBS, referring to platinum group metals (PGM)
which have seen a volatile trade since the start of the year.
[]
Spot platinum <XPT=> was at $1,552.50 an ounce after rising
to $1,569 an ounce, its highest since May 20 and versus $1,561
an ounce late in New York on Thursday while spot palladium
<XPD=> was at $465 an ounce versus Thursday's $462 an ounce.
It earlier hit $467.03 an ounce, its highest since May 19.
Carmakers account for around half of annual demand for the
metals for use in autocatalysts. Strength in Chinese car sales
and a recovery in U.S. automotive demand early this year have
especially benefited palladium. []
The news on the increase in the amount of metal allowed on
the platinum and palladium ETFs had also given a boost to the
metals, said Rory McVeigh, Commerzbank trader said.
Silver <XAG=> was at $18.34 an ounce versus $18.45 an ounce.
(Additional reporting by Jim Regan in Sydney; editing by
William Hardy)
