* Platinum, palladium hit multi-month highs
* Absa plans South African ETN linked to platinum
* Julius Baer gold ETF hits record
(Updates throughout, adds detail)
By Jan Harvey
LONDON, April 9 (Reuters) - Gold gave up its initial small
gains and eased as U.S stock futures and European equities rose
further on Thursday, while trading was muted ahead of the Easter
break.
Platinum and palladium both rose to multi-month highs,
however, as investment demand was boosted by news that new
exchange-traded products linked to the platinum group metals are
being planned.
Spot gold <XAU=> was at $877.20/878.20 an ounce at 1227 GMT
against $879.55 late in New York on Wednesday. U.S. gold futures
for April delivery <GCJ9> on the COMEX division of the New York
Mercantile Exchange eased $7.80 to $876.90 an ounce.
"I don't think we will see a great deal of action on gold,"
said Commerzbank analyst Eugen Weinberg. "The market was driven
by fear, so if there is not so much fear in the market investors
will not be looking for as much gold."
The metal eased as equity markets brightened in Europe and
stock futures in the United States lifted after Wells Fargo
<WFC.N> said it expects to record first-quarter earnings of
approximately $3 billion. []
Elsewhere platinum <XPT=> rose to a 6-1/2 month high of
$1,210 an ounce, and was later at $1,198.50/1,208.50 against
$1,174.50.
Palladium touched a peak of $234.50 an ounce, its highest
since late September, and was later at $235.50/240.50 an ounce
against $230.50.
Platinum and palladium are benefiting from strong investment
flows as buyers hope demand will rise in the second half of the
year, he said.
"Demand for new cars at the moment is not increasing, but
that means there is greater potential for increases going
forward," Weinberg said. "There is anticipation of greater
demand in the second half of the year."
Investors are also buying the metal for the same reasons
they are attracted to gold, he added. "Platinum is a hard asset,
and given the possible inflation risks in the future, people are
interested in diversifying into assets like that."
TRUSTS
South Africa's Absa Capital <ASAJ.J> said on Thursday it
plans to launch an exchange-traded note in the second half of
2009 to give investors exposure to the spot price of platinum.
[]
The platinum group metals were boosted earlier this week by
news that ETF Securities has filed with the Securities &
Exchange Commission to register platinum and palladium trusts in
the United States. []
"It is clear that many market participants have positioned
themselves ahead of a potential platinum ETF product," said one
London-based analyst.
"Platinum (and palladium) is currently on the receiving end
of the most enthusiastic investor reception that it has seen for
many months, and participants are happy to operate in defiance
of the recent pressure that gold has succumbed to."
Holdings of the world's largest gold-backed ETF, New York's
SPDR Gold Trust <GLD>, were unchanged on Wednesday for the
fourth straight session, raising fears investor demand for the
precious metal may be stagnating. []
However, in Europe Julius Baer <BAER.VX> said holdings of
the gold ETF it operates rose 72,000 ounces or 7 percent on
Wednesday to a record 1,076,575 ounces. []
On the supply side, South Africa, the world's number three
gold producer, said its output of the precious metal was up 2.7
percent in February from a year before. []
Among other precious metals, spot silver <XAG=> edged down
to $12.17/12.24 an ounce from $12.25.
(Editing by Anthony Barker)
