* Falling for eighth day, gold nears 3-week low
* China's strong econ data bolsters stocks, weighs on gold
* Uncertainties over global economic outlook linger
By Risa Maeda
TOKYO, March 4 (Reuters) - Gold fell for the eighth day in
a row on Wednesday, holding near a three-week low around $900
per ounce as glimmers of economic hope in China encouraged some
investors to cash out of bullion to seek bargains in battered
stocks.
Manufacturing data from China suggested the country could
be on the brink of a recovery despite a slump in global demand,
while an official said further stimulus spending was in the
works, news that bolstered regional stock markets, helping the
Nikkei reverse early losses to end up 0.9 percent.
[]
Investors will now be looking toward U.S. economic data
including a key monthly jobs report later this week to gauge
the health of the world's biggest economy, which could offer
fresh support for gold if it stokes doubt over the global
economy.
Spot gold <XAU=> dipped 0.4 percent to $912.20 an ounce by
0714 GMT after falling Tuesday as low as $904.30, the lowest
since Feb. 10, dragged down by forced liquidation related to a
volatile equities market and technical weakness.
"There are signs that some investors are unwinding some
gold longs to shift away from safety," said Tatsufumi Okoshi,
senior economist at Nomura Securities Co's financial and
economic research center.
The surge in demand for gold-backed exchange-traded funds
(ETFs) that helped drive prices to an 11-month high of
$1,005.40 on Feb. 20 has stalled recently, while that for
silver-backed ETFs deteriorated in the past three sessions,
another factor casting shadow over investors' sentiment,
analysts said.
The world's largest gold-backed ETF, the SPDR Gold Trust
<GLD>, said its holdings have remained at a record 1,029.29
tonnes since Feb. 26.
The world's largest silver-backed ETF, the iShares Silver
Trust <SLV>, said its bullion holdings fell for the third day
in a row from a record to 7,981.17 tonnes on March 3.
"It could be a temporary phenomena, but we had better be
prepared for a change in the ETF's trend," said Yuki Sonoda,
adviser at Daiichi Commodities Co in Tokyo.
If so, platinum may see the biggest fall, he added.
"Platinum has just followed gold and silver higher despite
dire fundamentals due to a slump in global auto demand and the
fate of GM," Sonoda said, referring to General Motors Corp
<GM.N> which is racing to complete a restructuring plan this
month to kepe it from bankruptcy.
Spot silver <XAG=> fell 0.6 percent to $12.71 per ounce,
and platinum <XPT=> was up 0.5 percent at $1,036. Like
palladium, platinum is mainly used to clean vehicle exhaust
fumes and to make jewellery.
But a shift in funds from gold so far is a minor one and
does not necessarily mean the allure of the precious metal is
fading since there is persistent fear that stock markets could
be hit again, analysts said.
Some will also be watching the monthly private U.S. payroll
survey from ADP Employer Services later in the day, which
serves as a forerunner to Friday's U.S. non-farm payrolls
report.
Economists in a Reuters poll expect 610,000 jobs were lost
in February versus a loss of 522,000 in January.
Precious metals prices at 0723 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 911.65 -4.05 -0.44 43.41
Spot Silver 12.70 -0.10 -0.78 -1.17
Spot Platinum 1035.00 4.00 +0.39 -8.57
Spot Palladium 190.00 -1.50 -0.78 -42.77
TOCOM Gold 2902.00 -17.00 -0.58 18.69
47281
TOCOM Platinum 3280.00 -26.00 -0.79 -22.90
9909
TOCOM Silver 399.50 2.70 +0.68 -19.01
506
TOCOM Palladium 611.00 8.00 +1.33 -51.31
347
Euro/Dollar 1.2519
Dollar/Yen 98.70
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 Jonathan
Leff)
