* Gold pressured on hopes downturn may bottom out
* U.S. stock markets higher, led by optimism in banks
* GLD bullion holdings rise to new record
(Recasts, updates with quotes, closing prices, adds NEW YORK
to dateline)
By Frank Tang and Jan Harvey
NEW YORK/LONDON, March 16 (Reuters) - Gold ended lower on
Monday as economic optimism and concerns about further
consolidation in an overbought market kept bullion investors on
the sidelines.
"There is an increase in optimism of the financial markets
over the past couple weeks," which triggered profit taking in
gold as a safe-haven investment, said Carlos Sanchez, precious
metals analyst at CPM Group.
Technical weakness and selling pressure in an overbought
market also weighed down the yellow metal, Sanchez said.
Spot gold <XAU=> was at $921.90 an ounce at 2:43 p.m. EDT
(1843 GMT), down 0.6 percent from its last quote $927.90 late
in New York on Friday.
U.S. gold futures for April delivery <GCJ9> settled down
$8.10 at $922.00 an ounce on the COMEX division of the New York
Mercantile Exchange.
World stocks climbed for the fifth straight session amid
hopes the U.S. recession may be bottoming out. []
Federal Reserve Chairman Ben Bernanke said on Sunday the
United States should start recovering from recession next year.
[]
His comments boosted risk appetite, markets, with stocks
rising and gold and the dollar dipping.
The euro extended gains against the dollar after U.S.
Treasury data showed foreign investors sold a record $148.9
billion in U.S. securities in January, adding to concerns about
the country's ability to finance its current account deficit.
The uncertain economic outlook and concerns over financial
sector stability have driven buying of gold and bullion-backed
exchange-traded funds (ETFs) since the beginning of the year.
"Gold has been kind of caught mid-way between rising stock
markets and investment fund flow through the ETF channel,"
Pradeep Unni, senior analyst at Richcomm Global Services,
said.
The world's largest gold-backed exchange-traded fund, the
SPDR Gold Trust <GLD>, said holdings hit a record 1,056.82
tonnes on March 15, up 15.29 tonnes from a day before.
[]
ETF Securities said holdings of its Physical Gold <PHAU.L>,
Gold Bullion Securities <GBS> and GOLD ETCs climbed to 6.97
million ounces on Friday from 6.89 million a week before.
[]
Supply and demand fundamentals lent little support to fold
prices, analysts said, with jewelry sales languishing and scrap
supply steady.
Among other precious metals, spot silver <XAG=> was at
$12.88 an ounce, down 2.2 percent from its Friday finish of
$13.17.
Spot platinum <XPT=> was at $1,050.50 an ounce, up 0.1
percent from its previous close of $1,054.50, while spot
palladium <XPD=> was at $197.00 an ounce, up 0.3 percent from
its late Friday New York quote of $196.50.
Carmakers are the major users of the platinum group metals
in autocatalyst manufacturing.
(Additional reporting by Paul Lauener in London; Editing by
David Gregorio)
