* Gold keeps gains above $900, ETF further away from record
* Investor risk appetite up but no big position shift yet
* Gold supported as financial and economic worries persist
* China gold reserves at 1,054 tonnes, agency Xinhua says
By Chikako Mogi
TOKYO, April 24 (Reuters) - Gold inched up on Friday,
keeping gains above $900 after rallying to a three-week high
the previous day, while holdings of the world's biggest
gold-backed exchange-traded fund dipped further away from a
record high.
Prices were supported as physical demand from India, the
world's largest consumer, has picked up ahead of the Akshaya
Tritya festival on April 27, an auspicious time for gold
buying.
Spot gold <XAU=> rose to $904.70 per ounce by 0340 GMT, up
0.3 percent from New York's notional close of $902.00. At
current levels, gold is down about 10 percent from an 11-month
high above $1,000 hit in February.
Gold rose to a three-week high of $908.70 an ounce on
Thursday and was set for its biggest one-week gain in two
months.
"The rise in spot prices is probably largely technical, as
there appears to be no big shift in investors' risk positions,"
said a senior dealer at a Japanese trading house.
In Beijing, state news agency Xinhua quoted an official as
saying China had 1,054 tonnes of gold in its state reserves.
Hu Xiaolian, head of the State Administration of Foreign
Exchange (SAFE) said China's reserves had risen 454 tonnes
since 2003 and were now the fifth biggest in the world, with
only six countries holding more than 1,000 tonnes [].
Bullion's appeal as a safe-haven asset remains intact due
to persistent worries about the global economy and financial
sector but price gains have capped by signs of slight
improvement in corporate and economic activity in the United
States and China.
Holdings at the world's largest gold-backed exchange-traded
fund, the SPDR Gold Trust <XAUEXT-NYS-TT>, fell to 1,104.45
tonnes as of April 23, down 1.53 tonnes or 0.1 percent from the
previous day. []
A 44 percent surge in SPDR's holdings since the start of
the year had helped underpin gold prices, but the last increase
was nearly a month ago.
While investor sentiment towards the U.S. and China seemed
to have improved somewhat, concerns remain about Europe, the
dealer said.
"The next key driver will be European stocks and whether
investors shift funds or not," the dealer said.
Low interest rates globally are helping to bolster
financial strength for banks and securities firms, but consumer
demand was still slack, limiting rises in stocks and keeping
risk aversion alive, traders said.
U.S. stocks rose in volatile trade on Thursday as
better-than-expected results from several regional banks lifted
financial shares, overshadowing disappointing economic data.
[]
Key U.S. data including March durable goods orders and new
home sales are scheduled for release later on Friday.
PRICES
Precious metals prices at 0340 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 904.75 2.75 +0.30 2.79
Spot Silver 12.73 -0.01 -0.08 12.46
Spot Platinum 1182.00 3.50 +0.30 26.82
Spot Palladium 231.50 1.00 +0.43 25.47
TOCOM Gold 2851.00 15.00 +0.53 10.80
11846
TOCOM Platinum 3727.00 2.00 +0.05 40.54
7427
TOCOM Silver 397.50 7.70 +1.98 24.49
187
TOCOM Palladium 737.00 -1.00 -0.14 34.00
279
Euro/Dollar 1.3144
Dollar/Yen 97.32
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Additional reporting by Miho Yoshikawa; Editing by Clarence
Fernandez)
