* Hopes downturn is bottoming boosts stocks
* India buys more gold than expected for Akshaya Tritya
* ETF Securities silver ETF adds 250,000 ounces
(Releads, updates prices)
By Jan Harvey
LONDON, April 30 (Reuters) - Gold fell 1 percent in Europe
on Thursday as disappointment over its failure to hold above
$900 an ounce and the dollar's recovery from lows versus the
euro sparked fund selling of the precious metal.
Spot gold <XAU=> was bid at $890.25 an ounce at 1205 GMT,
against $897.60 an ounce late in New York on Wednesday.
Gerry Schubert, director of precious metals at Fortis Bank,
said the move had been led by fund selling.
"The euro has given back (some ground), which probably
initiated the move, but the selling was quite relentless and
quite strong," he said.
The dollar recovered early losses against the euro on
Thursday, with traders taking profits after the U.S. currency
fell to a three-week low against a basket of currencies earlier
in the session. []
Gold is often bought as an alternative asset to the U.S.
currency, and usually moves in the opposite direction to it.
Global stocks touched a four-month high on Wednesday on
hopes for an improvement in the U.S. economy. European shares
rose as a wave of blue chip earnings boosted optimism.
[] []
A recovery in the equity markets has pressured gold, as
investors sell the precious metal to buy stocks. Hopes the
downturn may be bottoming out are likely to continue boosting
equities, further weighing on gold, analysts said.
The Federal Reserve said after a meeting on interest rates
on Wednesday the U.S. economic contraction seemed to be slowing,
cheering traders even as data showed the world's largest economy
shrank sharply in the first quarter. []
"Any more positive economic sentiment will put downward
pressure on gold again, at least in the short term," Societe
Generale metals analyst David Wilson said.
INDIAN GOLD SALES
On the demand side, the World Gold Council reported Indian
gold sales ahead of the festival of Akshaya Tritya earlier this
week were down 8 percent from a year ago, much higher than
estimates from a local trade body and jewellers. []
On the investment side, holdings of the world's largest
gold-backed exchange-traded fund, the SPDR Gold Trust <GLD>,
were unchanged for a fourth session on Wednesday.
The trust's gold assets have fallen 23 tonnes month on
month, against a rise of more than 98 tonnes in the preceding
four weeks.
Elsewhere, spot platinum <XPT=> was bid at $1,108.50 an
ounce against $1,094.50, while palladium <XPD=> was bid at $220
an ounce against $218.50. While the metals have been pressured
by lower demand from carmakers, mine supply is also lacklustre.
Anglo American <AAL.L>, the parent company of the world's
biggest platinum miner Anglo Platinum <AMSJ.J>, said its refined
platinum output fell 5.8 percent in the first quarter, but stuck
with its full-year output target of 2.4 million ounces.
[]
Among other precious metals, silver <XAG=> was bid at $12.65
an ounce against $12.76, tracking gold lower.
ETF Securities said holdings of its silver-backed
exchange-traded commodity <PHAG.L> rose 250,000 ounces or 1.4
percent on Wednesday.
(Editing by James Jukwey)
