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

TOKYO (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 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 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 October 6.

* The world's largest gold-backed exchange-traded fund, SPDR Gold Trust, said its holdings stood at 1,105.654 tons as of October 27, down 1.22 tons 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 falling to a three-week low of $16.47. Platinum 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:

- 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)

(Reporting by Chikako Mogi; Editing by Edwina Gibbs)