* US equities negative but lack of investment demand weighs
* SPDR gold ETF holdings unchanged, Indian demand sluggish
(Recasts, updates prices and comments)
By Jan Harvey and Michael Taylor
LONDON, April 16 (Reuters) - Gold slipped to a one-week low
on Thursday as investors pointed to a slowdown in investment
demand and technical selling, with global equities mixed.
Sluggish physical demand was also providing little support
to prices, analysts said.
Spot gold <XAU=> was bid at $878.80/879.80 an ounce at 1611
GMT against $890.60 late in New York on Wednesday.
"Overall it will come lower, it's just a question of when
rather than if," said Simon Weeks, director of precious metals
at the Bank of Nova Scotia. "The safe-haven demand side has
fallen off dramatically for the time being."
"There is no big flow of money coming from an investment
point of view," he added. Investment demand had buoyed gold to
above $1,000 an ounce in late February, but bullion has since
lost more than 12 percent.
The world's largest gold-backed exchange-traded fund, New
York's SPDR Gold Trust <GLD>, has recorded no fresh inflows in
nearly a week. []
The trust's holdings have risen less than quarter of a tonne
so far in April, compared to nearly 40 tonnes in the comparable
period a month before.
European shares rose, with the FTSEurofirst 300 <FTEU3>
rising above 800 points for the first time since February 13.
[] But U.S. stocks lost ground as investors fretted about the
quality of bank earnings. []
"The market seems to be suffering from longs getting out as
equity markets offer better returns, and gold is less sought
after as a safe haven," said Citi analyst David Thurtell.
The precious metal has traded in a narrow $20 range so far
this week as the market is pulled between conflicting signals on
inflation and the outlook for the stock and currency markets.
"We've seen equities taking a bit of a knock and all
commodities come down," said Standard Bank analyst Walter de
Wet. "We've also seen very little activity in the physical
market which hasn't supported prices."
"We might need to see prices coming down a bit more before
we see decent support coming in."
On the currency markets, the dollar was broadly firmer as
hopes for a speedy economic recovery receded, pushing investors
towards assets seen as safer. []
A stronger dollar usually weighs on gold, which is often
bought as an alternative investment to the U.S. currency.
AUSPICIOUS
Indian jewellery sales continued to pick up on Thursday
ahead of the key Hindu festival of Akshaya Tritya, an auspicious
day for gold buying. However, volumes are "not huge", according
to one Chennai-based wholesaler. []
Jewellery demand in India has slumped in the last year as
prices have risen. Traders say buyers are awaiting further price
falls before making purchases.
"The metal... could look to spend more time in limbo in the
current $865-900 range as increasing physical interest absorbs
pockets of stale liquidation, or until a clearer picture of the
world economies is seen," said James Moore, an analyst at
TheBullionDesk.com.
Among other precious metals, spot platinum <XPT=> was bid at
$1,212.00/$1,222.00 an ounce against $1,216.50, while spot
palladium <XPD=> was bid at $232.50/237.50 an ounce against
$234.50.
Platinum has steadied since hitting a 6-1/2 month high on
Monday on expectations the downturn in the global car industry
may be easing, which boosted buying of the metal used in
autocatalysts.
Rhodium <RHOD-LON> climbed another $50 an ounce or 4 percent
to $1,300 an ounce, its highest level since early December,
building on the previous session's 9 percent gains.
The metal is benefiting from rising platinum prices and
hopes for better car demand.
Silver <XAG=> was at a one-week low at $12.25/12.31 an ounce
against $12.75 with traders saying it was tracking gold prices
lower.
(Reporting by Michael Taylor; editing by Peter Blackburn)
