* SPDR Gold Trust hits new record just below 1,000 tonnes
* U.S. markets closed for Presidents Day holiday
(Updates prices, adds comment)
By Jan Harvey
LONDON, Feb 16 (Reuters) - Gold was little changed in Europe
on Monday, consolidating after last week's more than 3 percent
rise, although buying of gold and bullion-backed exchange-traded
funds supported prices.
Spot gold <XAU=> was steady at $941.70/943.70 an ounce at
1559 GMT from $939.40 in New York late on Friday.
U.S. gold futures for April delivery <GCJ9> on the COMEX
division of the New York Mercantile Exchange rose 20 cents to
$941.70 an ounce.
Bullion prices rose nearly $30 an ounce last week as concern
over the economic outlook and turmoil in the financial sector
prompted investors to buy the metal as a haven from risk.
The closure of the U.S. markets for the Presidents Day
holiday kept traders on the sidelines this session. "We won't
get the pull from safe-haven buying out of the United States
today," UBS analyst John Reade said.
Fear-driven demand for investment products has helped
balance a drop-off in jewellery buying in traditional gold
markets such as China, India and the Middle East.
The world's largest gold-backed ETF, New York's SPDR Gold
Trust <GLD>, said its holdings rose more than 15 tonnes to a
record 985.86 tonnes on Friday. The trust's gold holdings are up
more than 205 tonnes or 26 percent so far this year.
But India's gold demand was slack on Monday as high prices
put traders off purchases. "Gold demand is very sluggish, and
everybody is waiting for a dip to $900-$920," a dealer at a
state-run bank in Mumbai said.
Analysts say gold is likely to consolidate before moving
higher.
"Given the scale of demand that entered the market last
week, we are concerned gold is perhaps in need of
consolidation/correcting before successfully clearing above
$950," said James Moore, an analyst at TheBullionDesk.com.
DIRECTION
Gold took little direction from its usual main external
drivers, the dollar and oil prices.
The dollar gained ground versus the euro as grim Japanese
data intensified global recession fears and encouraged buying of
safer assets. []
Gold typically trades in the opposite direction to the U.S.
currency, as it is often bought as a hedge against dollar
weakness. However, both are currently benefiting from rising
risk aversion.
Oil prices slipped below $37 a barrel as a raft of bearish
economic data focused attention on declining global crude
demand. []
Among other precious metals, silver also took support from
strong investment.
Holdings of the biggest silver ETF, the IShares Silver Trust
<SLV>, were at a record 7,607 tonnes on Friday. Spot silver
<XAG=> edged down to $13.56/13.64 an ounce from $13.62.
Platinum and palladium remain under considerable pressure
from the sluggish outlook for the car industry, a major user of
the metals as a component in catalytic converters.
President Barack Obama has decided to launch a government
task force for restructuring the struggling U.S. auto industry,
a senior administration official said on Sunday. []
Platinum <XPT=> edged up to $1,060/1,068 an ounce from
$1,059.50, while palladium <XPD=> was at $213/217 an ounce from
$214.
London-based ETF Securities said holdings of its
palladium-backed exchange-traded commodity rose 30 percent last
week as a recovery in platinum and palladium prices cheered
investors. []
(Editing by Sue Thomas)
