* Wall Street rises at the open, denting appeal of gold
* SPDR gold ETF holdings unchanged, Indian demand sluggish
(Releads, udates prices, adds comment)
By Jan Harvey
LONDON, April 16 (Reuters) - Gold slipped on Thursday
afternoon after holding a broadly flat trajectory as U.S. shares
opened higher after a strong session in Europe, denting the
precious metal's appeal as an alternative asset.
Sluggish investment and physical demand were providing
little support to prices, analysts said.
Spot gold <XAU=> was bid at $881.25 an ounce at 1347 GMT
against $890.60 late in New York on Wednesday.
U.S. stocks opened higher after better-than-expected
quarterly results from JPMorgan Chase & Co and several positive
reports from the tech sector. []
European shares rose earlier on Thursday, with the
FTSEurofirst 300 <FTEU3> rising above 800 points for the first
time since February 13. []
"The market seems to be suffering from longs getting out as
equity markets offer better returns, and gold is less sought
after as a safe haven," said Citi analyst David Thurtell.
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 limiting moves in gold.
"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."
On the currency markets, the dollar was a touch firmer
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
$1,206.50 an ounce against $1,216.50, while spot palladium
<XPD=> was bid at $232 an ounce against $234.50.
Platinum has steadied since hitting a 6-1/2 month high on
Monday on expectations the downturn in the global car industry
may be easing, which boosted buying of the metal used in
autocatalysts.
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 $12.35 an ounce against $12.75.
(Reporting by Jan Harvey; Editing by Keiron Henderson)
