* Platinum, palladium hit multi-month highs
* Absa plans South African ETN linked to platinum
* Julius Baer gold ETF hits record
(Updates prices, adds detail)
By Jan Harvey
LONDON, April 9 (Reuters) - Gold edged lower as U.S and
European stock markets rose further on Thursday, with trading
muted ahead of the Easter break.
Platinum and palladium both rose to multi-month highs,
however, as investment demand was boosted by news that new
exchange-traded products linked to the platinum group metals are
being planned.
Spot gold <XAU=> was at $878.40/880.40 an ounce at 1457 GMT
against $879.55 late in New York on Wednesday. U.S. gold futures
for April delivery <GCJ9> on the COMEX division of the New York
Mercantile Exchange eased $5.50 to $879.30 an ounce.
"I don't think we will see a great deal of action on gold,"
said Commerzbank analyst Eugen Weinberg. "The market was driven
by fear, so if there is not so much fear in the market investors
will not be looking for as much gold."
The metal eased as equities rose in Europe and the United
States, after upbeat quarterly results from Wells Fargo <WFC.N>
fuelled optimism the banking sector will stabilise. []
Elsewhere platinum <XPT=> rose to a 6-1/2 month high of
$1,210 an ounce, and was later at $1,196.50/1,206.50 against
$1,174.50. Palladium touched a peak of $236 an ounce, and was
later at $232.50/237.50 an ounce against $230.50.
Platinum and palladium are benefiting from strong investment
flows as buyers expect demand for the metal used in
autocatalysts will rise in the second half of the year.
Chinese car sales rose more than 10 percent in March,
official data showed, fuelling hopes the downturn in the global
automotive industry could be bottoming out. []
Investors are also buying platinum for the same reasons they
are attracted to gold, Weinberg added. "Platinum is a hard
asset, and given the possible inflation risks in the future,
people are interested in diversifying into assets like that."
South Africa's Absa Capital <ASAJ.J> said on Thursday it
plans to launch an exchange-traded note in the second half of
2009 to give investors exposure to the spot price of platinum.
[]
TRUSTS
ETF Securities said holdings of its platinum-backed
exchange-traded commodities in the UK and Australia rose 16,869
ounces in the week to Wednesday to stand at 326,799 ounces.
The platinum group metals were boosted earlier this week by
news the company has filed with the Securities & Exchange
Commission to register platinum and palladium trusts in the
United States. []
"It is clear that many market participants have positioned
themselves ahead of a potential platinum ETF product," said one
London-based analyst.
"Platinum (and palladium) is currently on the receiving end
of the most enthusiastic investor reception that it has seen for
many months, and participants are happy to operate in defiance
of the recent pressure that gold has succumbed to."
Holdings of the world's largest gold-backed ETF, New York's
SPDR Gold Trust <GLD>, were unchanged on Wednesday for the
fourth straight session, raising fears investor demand for the
precious metal may be stagnating. []
However, in Europe Julius Baer <BAER.VX> said holdings of
the gold ETF it operates rose 72,000 ounces or 7 percent on
Wednesday to a record 1,076,575 ounces. []
On the supply side, South Africa, the world's number three
gold producer, said its output of the precious metal was up 2.7
percent in February from a year before. []
Among other precious metals, spot silver <XAG=> edged down
to $12.22/12.29 an ounce from $12.25.
(Editing by James Jukwey)
