* SPDR holdings jump to record 1,124.99 tonnes
* Gold market eyes equities, dollar
(Recasts, adds comment, changes dateline from TOKYO)
By Paul Lauener
LONDON, March 25 (Reuters) - Gold eased on Wednesday, but a
softer tone on equity markets and strong investor interest are
expected to support prices of the metal, seen as a safe store of
value.
The precious metal used as a hedge against financial
uncertainty has come under pressure in recent days as stock
markets rallied on optimism about the U.S. government's drive to
clean up bad loans held by banks.
Spot gold <XAU=> was $921.70/922.70 per ounce at 1041 GMT,
down from $925.65 late in New York on Tuesday when it fell
nearly 2 percent on fund selling and a stronger dollar.
David Thurtell, an analyst at Citigroup, said gold had found
a base. "The equity markets had an indifferent night and gold
has found a bit of support. The flows out of gold towards
equities seem to have abated for now."
Thurtell said the stock market would probably be the
deciding factor in setting gold prices on Wednesday.
European stocks were little changed on Wednesday after four
days of gains. []
Markets are looking ahead to data from the United States on
the housing markets and durable goods. Further signs of weakness
in the United States, the world's largest economy, could hit
confidence further in both equity markets and the dollar.
Gold is up about 5 percent from a six-week low of $882.90
hit on March 18, but is still more than 7 percent shy of
the 11-month high above $1,000 set in February. It soared to an
all-time peak of $1,030.80 in March 2008.
Investors piled into gold in recent months as the financial
crisis escalated, the dollar tumbled and markets started to
worry about price pressures in the pipeline because of the vast
amounts of money being pumped into economies.
"We believe that the aggressive credit easing by U.S.
authorities has come with the risk of a huge expansion in
liquidity, and with it inflationary concerns that could prove
to be positive for gold further ahead," Barclays Capital said in
a note.
Strong interest can be seen in the world's largest
gold-backed exchange-traded fund, the SPDR Gold Trust <GLD>,
which said its holdings rose to a record 1,124.99 tonnes on
March 24, up 10.7 tonnes from the day before.[]
For details on the gold holdings of the ETF listed in New
York and co-listed on other exchanges, click:
http://www.exchangetradedgold.com/iframes/usa.php
For a graphic, click:
https://customers.reuters.com/d/graphics/MKTS_SPDRGLD240309.jpg
Spot silver <XAG=> was bid $13.26 an ounce from $13.40 an
ounce on Tuesday, palladium <XPD=> at $203 from $205.50 and
platinum <XPT=> at $1,118 from $1,114.
Platinum used in autocatalysts to clean car emissions has
tumbled alongside deteriorating sales in the auto sector. Prices
have halved since a record $2,290 in March 2008.
(Editing by Sue Thomas)
