* ECB sold 35.5 tonnes of bullion on March 31
* Reuters data shows gold up 4 pct in Q1, platinum up 21 pct
* Traders await direction from G20 summit
(Updates throughout, changes dateline - pvs TOKYO)
By Jan Harvey
LONDON, April 1 (Reuters) - Gold was steady in Europe on
Wednesday as traders awaited direction from this week's G20
summit in London, with the firmer dollar versus the euro curbing
interest in the precious metal.
Bullion ended the first quarter of the year up 4 percent,
boosted by fears measures to stimulate the global economy would
lead to a rise in inflation.
Spot gold <XAU=> was little changed at $919.30/921.40 an
ounce at 1007 GMT from $917.15 late in New York on Tuesday.
Trading is expected to be muted ahead of Thursday's meeting of
G20 leaders.
"The market is looking for guidance, and if (the G20) can't
provide that, risk aversion will obviously continue and that
will have an impact on gold on the upside," said Saxo Bank
senior manager Ole Hansen.
World leaders are gathering in London to tackle the global
economic crisis, amid fresh signs of weakness in major economies
including Japan, where business confidence fell to record lows.
[]
Traders are also awaiting an interest rate decision from the
European Central Bank on Thursday and Friday's U.S. non-farm
payrolls data for direction.
Meanwhile a rise in the dollar, typically a key driver for
gold, is curbing buying interest in the metal.
The currency was supported as uncertainty over the outlook
for U.S. carmakers and falling share prices prompted investors
to seek perceived safer assets. []
Traders said gold's failure to build on the gains it posted
last quarter on fears over the inflation outlook and strong
inflows into exchange-traded funds such as New York's SPDR Gold
Trust <GLD> is also weighing on prices. []
"The market is disappointed that gold has not been able to
hold upside gains," said Deutsche Bank trader Michael
Blumenroth.
The European Central Bank said it completed the sale of 35.5
tonnes of gold on Tuesday. However, the news had little impact
on price. []
DOWNTURN
The other precious metals were little changed. Spot platinum
<XPT=> was at $1,123/1,131 an ounce from $1,123.50, while spot
palladium <XPD=> was at $215/218 an ounce, against $213.50.
The metals suffered from falling demand from carmakers as
the economic downturn gathered pace, the major buyers of the
metals which are used in the manufacture of autocatalysts.
But platinum, which fell as much as 68 percent towards the
end of last year from its record high of $2,290 an ounce reached
in March, recovered in the first quarter, posting gains of
nearly 21 percent, according to Reuters data.
Precious metals group Heraeus said in a monthly note that
platinum had benefited from speculators' and investors' hopes of
a turnaround in the global economic situation.
"Buyers were relying on the surprisingly good figures
from the U.S. economy -- home sales and durable goods -- as well
as the U.S. government's plan to buy up "toxic assets" worth $1
trillion from the banks," it said.
Platinum specialist Johnson Matthey <JMAT.L> said its
final-quarter sales were down year-on-year because of the weak
automotive market and lower metal prices, in line with its
expectations. []
Spot silver <XAG=> was steady at $12.93/13.00 an ounce
against $12.93 late in New York on Tuesday, awaiting direction
from gold. Silver prices rose 14 percent in the first quarter.
(Reporting by Jan Harvey; Editing by Keiron Henderson)
