* SPDR holdings jump to record 1,124.99 tonnes
* Gold market eyes equities, dollar
(Updates prices after U.S. data)
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 precious 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 bid at $922.30 an ounce at 1332 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 slipped as a recent rally in financials on
the back of a U.S. plan to purge toxic assets from banks'
balance sheets lost steam. [] []
PIPELINE PRESSURES
But traders said a rise in U.S. durable goods orders could
help both stock markets and the dollar, which could push gold
down further. []
A higher dollar makes commodities priced in the U.S.
currency more expensive for holders of other currencies.
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.
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 $13.18 an ounce from $13.40 an
ounce on Tuesday, palladium <XPD=> at $204 from $205.50 and
platinum <XPT=> at $1,112 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.
(Additional reporting by Pratima Desai; Editing by Sue
Thomas)
