* Rise in stock markets dents gold's appeal
* SPDR gold ETF sees outflow; iShares Silver hits record
* Indian jewellery demand picks up as prices fall
* ETF Securities files to register platinum trust with SEC.
(Adds quotes, updates prices)
By Jan Harvey and Veronica Brown
LONDON, April 6 (Reuters) - Gold slid almost 2 percent in
Europe on Monday as investors opted to move away from the
perceived safety of bullion and load up on stocks, taking a view
that the global downturn might be in the process of stabilising.
Spot gold <XAU=> was quoted at $878.75/879.85 an ounce at
1234 GMT from $892.50 late in New York on Friday.
Tentative optimism about the economy in the after-glow of
last week's G20 meeting bolstered share prices and lessened the
allure of gold. Global stocks as measured by MSCI's all-country
index rose almost half a percent on the day <.MIWD00000PUS>.
"After the G20, people are willing to believe there's an
opportunity for some green shoots of recovery and stock markets
are looking buoyant as a result," said Simon Weeks, managing
director of precious metals at ScotiaMocatta in London.
"You'd expect some unwinding of gold's safe haven status and
a recovery in some of the other metals that had been under the
cosh on the overall economic situation," he added.
Industrial commodity prices also climbed on hopes a recovery
in the beleaguered economy could resuscitate demand. Base metals
climbed, with copper hitting a five-month high, while oil prices
gained more than $1 a barrel. [] []
On the currency markets, the yen fell to its weakest against
the dollar and euro in nearly six months. []
The dollar steadied against the euro. A weaker dollar
usually benefits gold, which is often bought as an alternative
investment to the U.S. currency. However, the usual relationship
between the two has faltered as both react to risk aversion.
OUTFLOW
Meanwhile, the world's largest gold-backed exchange-traded
fund, New York's SPDR Gold Trust <GLD>, said it recorded a small
outflow on Friday from record levels.
ETFs issue securities backed by physical stocks of a
precious metal. Buying by the funds has been a major element of
overall gold demand in recent months as the financial crisis has
fuelled interest in physical assets.
The recent fall in prices has revived demand from another
source, however, with Indian jewellery sales picking up ahead of
the key gold-buying Akshaya Tritya festival later this month.
[]
"The gold market is showing clear signs of improved near-term
fundamentals: scrap supply is much slower since gold fell below
$930/oz," UBS said in a note.
"Patchy jewellery demand was seen late last week when gold
was near the week's lows; and this morning our traders report
Indian clients calling to buy gold... because it is now cheap."
Among other precious metals, spot platinum <XPT=> eased to
$1,150/1,160 an ounce from $1,154.50.
Spot palladium <XPD=> firmed to $222/226 an ounce from $218.
Silver <XAG=> dipped to $12.37/12.44 an ounce from $12.71.
The world's largest silver-backed ETF, the iShares Silver
Trust <SLV>, said its holdings rose 119.55 tonnes or 1.4 percent
from the day before to a record 8,413.01 tonnes on Apr 3.
[]
(Editing by Sue Thomas)
