* U.S. weekly jobless claims fall for third week
* 10-day winning streak in Dow weighs on gold buying
* SPDR Gold Trust holdings unchanged after recent losses
* Coming up: US consumer prices, industrial output Friday
(Updates throughout, changes dateline, byline, pvs LONDON)
By Frank Tang
NEW YORK, March 14 Gold edged up on Thursday,
paring earlier gains, as a 10-day rally in U.S. equities
benchmark the Dow Jones industrial average and data showing an
improving U.S. labor market recovery dented safe-haven buying.
The metal's gains were capped by fresh signs of strength in
the U.S. labor market as the number of filings for new
unemployment benefits fell for a third week in a row.
"Investors are now more concerned about equities'
performance and are not buying defensive assets such as gold as
they don't see any risks," said Den Denbow, portfolio manager of
the $1.4 billion USAA Precious Metals and Minerals Fund
Gold has failed to break above the $1,600 mark after several
attempts this week as the Wall Street rally sapped bullion
However, gold should benefit from ongoing concerns,
including the U.S. budget deficit and debt ceiling and fiscal
problems in Europe, Denbow said.
Spot gold was up 0.1 percent to $1,588.46 an ounce by
4:03 (2003 GMT).
U.S. COMEX gold futures for April delivery settled
up $2.30 at $1,590.70 an ounce, with trading volume at about 20
percent below its 250-day average.
Thursday's jobless claims data came on the heels of strong
gains in U.S. employment and manufacturing, which have increased
chances the Federal Reserve might halt its bond-buying program
earlier than thought, analysts said.
The metal hit a two-week high of $1,599.10 on Wednesday on
continued concerns about the euro zone, but failed to breach the
$1,600 level due to a resurgent dollar and persistent
redemptions in gold-backed exchange-traded funds.
SPDR HOLDINGS LITTLE CHANGED
Pointing to the recent drop in a key gauge of investor
interest, analysts said investors remained lukewarm toward gold.
Holdings of the largest gold-backed exchange-traded-fund,
the SPDR Gold Trust, held unchanged on Wednesday after a
record monthly outflow in February.
The next major economic reading comes on Friday with U.S.
consumer inflation data. Investors will also be anticipating any
word from officials at next week's U.S. central bank policy
Despite an improving economic outlook, analysts expect the
Fed's current $85 billion monthly purchases of mortgage-backed
securities and Treasuries to last through 2013 and into 2014.
Among other precious metals, spot silver was down 0.4
percent to $28.76 an ounce.
Platinum fell 0.2 percent to $1,585.25, and palladium
dropped 0.5 percent to $767.06.
4:03 PM EDT LAST/ NET PCT LOW HIGH CURRENT
SETTLE CHNG CHNG VOL
US Gold APR 1590.70 2.30 0.1 1575.20 1592.20 134,378
US Silver MAY 28.807 -0.151 -0.5 28.530 28.955 37,366
US Plat APR 1589.80 -3.30 -0.2 1578.50 1594.90 9,728
US Pall JUN 770.75 -0.50 -0.1 755.55 774.65 3,859
Gold 1588.46 1.17 0.1 1577.53 1593.00
Silver 28.760 -0.110 -0.4 28.590 28.960
Platinum 1585.25 -3.25 -0.2 1581.75 1591.50
Palladium 767.06 -3.94 -0.5 759.52 771.25
TOTAL MARKET VOLUME 30-D ATM VOLATILITY
CURRENT 30D AVG 250D AVG CURRENT CHG
US Gold 155,010 190,979 175,350 13.17 0.25
US Silver 44,251 62,138 52,392 19.25 -0.21
US Platinum 11,306 13,731 10,855 16.43 -0.75
US Palladium 3,913 8,825 5,254
(Additional reporting by Clara Denina in London and Melanie
Burton in Singapore; Editing by Peter Galloway)