PRECIOUS-Gold steadies around $1,040, ETF dips 2 days in row

TOKYO, Oct 28 (Reuters) - Gold prices steadied around $1,040
per ounce on Wednesday, recovering from three-week lows hit the
day before when the dollar strengthened against the euro.

FUNDAMENTALS

* Spot gold XAU= was little changed at $1,039.7 as of 2346
GMT compared to New York's notional close of $1,038.8. Gold hit a
three-week low of $1,032.25 on Tuesday.

* U.S. gold futures for December delivery GCZ9 were up 0.5
percent at $1,040.8 per ounce, compared to $1,035.40 an ounce on
the COMEX division of NYMEX.

* Gold futures fell to a three-week low of $1,032.9 on
Tuesday to find resistance just above $1,030 an ounce, the
long-standing record high it passed on Oct. 6.

* The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust (GLD), said its holdings stood at 1,105.654 tonnes as
of Oct. 27, down 1.22 tonnes or 0.1 percent from the previous
business day. It was the second day of declines in a row.
[GOL/SPDR]

* Weakness in gold weighed on other precious metals on
Tuesday, with spot silver XAG= falling to a three-week low of
$16.47. Platinum XPT= also touched a three-week low of
$1,305.50 an ounce on Tuesday.

MARKET NEWS

* U.S. stocks fell on Tuesday as investors booked profits
following the market's recent run-up, while a
weaker-than-expected reading on a measure of consumer confidence
raised doubts about spending. [.N]

* The dollar was steady against the euro on Wednesday after
rising to a two-week high against the single currency the
previous day when a report showing U.S. consumer confidence
deteriorated sharply in October boosted the greenback's
safe-haven appeal. [USD/]

* Oil rose above $79 a barrel on Tuesday as data showing
rising U.S. gasoline demand helped investors shrug off a drop in
consumer confidence in the world's biggest energy user. [O/R]

DATA EVENTS

* The following data is expected on Wednesday: ECON

- Weekly U.S. mortgage market index. (1100 GMT)

- U.S> durable goods orders for September. (1230 GMT)

- U.S. new home sales for September. (1230 GMT)

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PRICES

Precious metals prices at 2347 GMT
Metal Last Change Pct chg Day ago pct MA 30 RSI
Spot gold $1039.60 $0.80 +0.08% +15.90% $860.10 43
Spot silver $16.69 $0.04 +0.24% +39.32% $11.29 33
Spot plat $1314.00 $2.00 +0.15% -1.24% $1322.53 37
COMEX gold $1040.80 $0.70 +0.07% -0.19% $1032.13 38
TOCOM gold 0,000 -3128-100.00% -100.00% 3,004 58
TOCOM plat 0,000 -4007-100.00% -100.00% 3,853 55
Currencies
Euro/dlr $1.482 $0.001 +0.05% -0.36%
Dlr/yen 91.61 -0.17 -0.19% -0.64%
(Reporting by Chikako Mogi; Editing by Edwina Gibbs)