* Gold prices await direction from currency markets
* Indian gold demand abates as prices rise above $1,040/oz
* Silver ETF reports 131-tonne inflow
(Updates throughout, changes dateline from TOKYO)
By Jan Harvey
LONDON, Oct 30 (Reuters) - Gold prices steadied just shy of
$1,045 per ounce on Friday, consolidating the previous session's
1.7 percent gain after data showed the U.S. crawling out of
recession, with investors eyeing the dollar for fresh direction.
Gold moves in a close inverse relationship with the dollar,
as the metal becomes cheaper for holders of other currencies
when the U.S. unit weakens.
Spot gold was bid at $1,044.25 an ounce at 1045 GMT, against
$1,044.95 late in New York on Thursday. U.S. gold futures for
December delivery <GCZ9> on the COMEX division of the New York
Mercantile Exchange fell $1.80 to $1,045.30 an ounce.
"At the moment, the metal and the dollar are moving in line
with equities, so it is worth keeping an eye on stocks later
today when U.S. data is due," said Alexander Zumpfe, precious
metals trader at Heraeus.
Several U.S. data releases are expected on Friday, including
September personal income and consumption at 1230 GMT, Chicago
manufacturing figures at 1345 and the Reuters/University of
Michigan Surveys October final consumer sentiment index at 1355.
The dollar was flat against a basket of six major
currencies, including the euro, on Friday <.DXY>.
The euro-dollar rate has moved in recent sessions in line
with risk appetite, with the U.S. currency tending to benefit
from falling share prices. [] []
RESILIENCE
Stronger-than-expected third-quarter gross domestic product
data boosted stocks and commodities on Thursday, helping lift
gold. Traders say the metal's resilience after its slip below
$1,030 an ounce has boosted confidence.
"The chart looks favorable after yesterday's move to within
$1.10 an ounce of key support from the Sept. 17 high at
$1,025.80," said MF Global in a note.
The light physical demand for gold that emerged in major
consumer India after the metal retreated from record highs
earlier this week is abating, dealers said, as prices resumed
their rise. []
Traders in India said more buying would be seen if the metal
retreated to $1,020 an ounce, or 15,800 rupees per ten grams.
Elsewhere holdings of the world's largest gold-backed
exchange-traded fund, New York's SPDR Gold Trust <GLD>, were
unchanged on Thursday after three sessions of declines.
[]
On the supply side, Harmony Gold Mining <HARJ.J>, the
world's fifth largest gold producer, said that due to the
strength of the rand, it may have to consider restructuring some
of its lowest-grade, highest-cost operations. []
Among other precious metals, spot silver <XAG=> was bid at
$16.58, against $16.63 an ounce late on Thursday.
The world's largest silver ETF, the iShares Silver Trust in
New York, said it saw an inflow of 131.43 tonnes on Thursday.
[]
As well as strong investment buying, traders say they are
also seeing a pick-up in industrial demand for silver. The metal
is primarily industrial in application, and is widely used in
electronics manufacturing.
Platinum <XPT=> was at $1,325 an ounce against $1,337.50,
while palladium <XPD=> was at $325 against $325.50.
(Reporting by Jan Harvey; Editing by Veronica Brown)
