* Gold stays near $890 as investors wary of dumping it
* Buying limited due to receding safe-haven demand
* SPDR Gold Trust <GLD> holdings unchanged at record
By Chikako Mogi
TOKYO, April 15 (Reuters) - Gold was steady around $890 per
ounce on Wednesday as investors watched equity markets to gauge
risk appetite and awaited U.S. earnings and manufacturing data
for more clues to the health of the global economy.
Traders said current prices were unlikely to draw either
buying or selling interest as investors pondered whether to
shift money into equities or hold on to gold.
Stock market sentiment has improved since a G20 meeting of
global leaders this month and after government stimulus
packages from around the world.
"There is not much interest at the $900 level as equities
look more exciting than gold and people are not feeling so much
pain," said Ronald Leung, director of Lee Cheong Gold Dealers
in Hong Kong.
"But investors don't want to dump gold because they don't
know where to put the money," he said, adding that there was
still too much uncertainty over the global economic outlook to
let go of safe-haven assets.
He said gold would have to fall near $875 to draw buying
interest, including jewellery buying, or rise above $900 to
prompt selling.
Spot gold <XAU=> was trading at $891.10 per ounce, up 0.2
percent from New York's notional close of $888.85 on Tuesday.
Bullion last closed above $900 on April 2 before hitting a
10-week low of $864.30 last week. Gold has stayed above its
100-day moving average, which now stands at $885.
Yukuji Sonoda, a precious metals analyst at Daiichi
Commodities in Tokyo, said both stock and gold markets were now
at a standstill, waiting for corporate earnings and the fate of
top U.S. automakers to provide them with fresh clues.
"Investors are now caught in a tug-of-war between gold and
equities," he said. "GM and Chrysler are the major factor
dragging the U.S. economy, and their fate will prompt investors
to take their next action," he said.
General Motors, operating with $13.4 billion in emergency
federal loans, has until June 1 to win concessions from
creditors and the auto workers union. Rival Chrysler pins its
hopes on a tie-up with Italy's Fiat.
Holdings at the world's largest gold-backed exchange-traded
fund, the SPDR Gold Trust <GLD>, were unchanged at a record
1,127.68 tonnes as of April 14, a level first reached on April
9. []
Traders said the spot market continues to be supported as
gold ETF holdings don't show any signs of retreating.
Japan's Nikkei stock average <> ended down 1 percent,
while MSCI's measure of stocks elsewhere in the Asia-Pacific
region <.MIAPJ0000PUS> extended losses to 3.8 percent. []
[]
Traders believe the precious metal's strength is intact as
investors remain cautious about U.S. corporate results.
U.S. March data for consumer prices, real earnings and
industrial production will be released later in the day.
Precious metals prices at 0610 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 891.30 2.45 +0.28 1.27
Spot Silver 12.72 0.00 +0.00 12.37
Spot Platinum 1216.00 12.00 +1.00 30.47
Spot Palladium 234.00 4.00 +1.74 26.83
TOCOM Gold 2835.00 -50.00 -1.73 10.18
23057
TOCOM Platinum 3865.00 -78.00 -1.98 45.74
22611
TOCOM Silver 401.80 -0.70 -0.17 25.84
302
TOCOM Palladium 755.00 -12.00 -1.56 37.27
272
Euro/Dollar 1.3245
Dollar/Yen 98.44
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 Clarence
Fernandez)
