* Stock markets recover in Europe, Asia
* SPDR gold ETF holdings unchanged
(Updates throughout, previous TOKYO)
By Jan Harvey
LONDON, March 10 (Reuters) - Gold slipped more than 1
percent in Europe on Tuesday as a recovery in equity markets
suggested risk aversion was easing, denting interest in the
metal as a safe haven.
Buying and selling of gold-backed ETFs remained subdued,
with the largest, New York's SPDR Gold Trust <GLD>, reporting no
movement in inventories on Monday.
Spot gold <XAU= > fell to $910.85/911.85 an ounce at 1019
GMT from $920.95 late in New York on Monday.
"This morning there seems to be a bit more of an upbeat
sentiment in the market, which is not good for gold," Standard
Bank analyst Walter de Wet said.
He said a move higher on Tuesday in equities, oil and other
commodities showed "people are slightly more optimistic on the
real economy".
Gold is typically seen as a safe store of value at times of
volatility in other assets, and tends to benefit from rising
risk aversion.
World stocks rose after three consecutive days of declines
knocked them to six-year lows, with the MSCI world equity index
<.MIWD00000PUS> climbing 0.7 percent and the FTSEurofirst 300
index <> erasing early losses to rise. []
European shares benefited from a memo from Citigroup's <C.N>
chief executive, which helped calm fears over the embattled
financial sector. According to the memo, the bank was profitable
in the first two months of 2009. []
Among other commodities, oil held above $47 a barrel as
dealers weighed up OPEC's decision on output this weekend, while
the base metals also ticked up. [] []
The dollar fell against a basket of currencies on Tuesday,
retracing some of the previous day's gains, as risk aversion
eased. []
Gold is typically bought as an alternative investment to the
dollar and until recently moved in a close inverse relationship
with it. However, the link between the two assets has recently
weakened, with both now reacting to risk aversion.
BLEAK
Analysts say the bleak global economic outlook and currency
market volatility is likely to continue supporting gold prices.
Plunging equity markets and inflation fears pushed the metal to
an 11-month high above $1,000 an ounce last month.
But slackening jewellery buying as prices rise is likely to
cap gains, as will a surge in scrap supply.
"The past week's reports from the physical gold markets of
India and China and last week Turkey also were anything but
positive as far as jewellery demand is concerned," precious
metals trading house Heraeus said in a weekly note.
Gold demand in India was quiet on Tuesday as banks closed
for a public holiday. []
Falling jewellery demand was offset by strong buying for
gold-backed exchange-traded funds earlier in the year. That,
however, has stalled.
The SPDR Gold Trust's holdings have remained relatively
steady in the last two weeks. In comparison, they jumped by some
200 tonnes in the first six weeks of the year. []
Among other precious metals, spot silver <XAG=> slipped to
$12.77/12.84 an ounce from $12.92. Spot platinum <XPT=> fell to
$1,044/1,052 an ounce from $1,058, while spot palladium <XPD=>
was little changed at $194.50/198.50 an ounce from $194.
(Editing by Sue Thomas)
