* Gold momentum fades on S&P gain, dollar rise
* Sentiment dips, George Soros said gold proves unsafe
* Investment demand weak as holdings in gold ETF drops
* Coming up: U.S. wholesale inventories data Tuesday
(Updates throughout, adds comments, changes byline, dateline,
By Frank Tang
NEW YORK, April 8 Gold fell on Monday as a
stronger performance in U.S. equities and a dollar rise prompted
investors to take profits after its rally in the previous
Bullion market sentiment was also weakened after billionaire
financier George Soros said gold has been destroyed as a
safe-haven asset, even though central-bank buying should support
With a lack of major U.S. economic indicators on Monday,
investors turned to buy riskier assets such as U.S. equities at
gold's expense. The S&P 500 was up around 0.3 percent and
has sharply outperformed gold year to date.
"We are going to hold here until that next catalyst comes.
On the upside, the funds appear done liquidating, and gold
should move its way back up once the liquidation is done," said
Phillip Streible, senior commodities broker at futures brokerage
Spot gold dropped 0.6 percent to $1,572.75 an ounce
by 2:56 p.m. EDT (1856 GMT).
On Friday, gold surged nearly 2 percent for its biggest
one-day gain in around five months as disappointing U.S. jobs
data fueled expectations the Federal Reserve will continue its
bullion-friendly bond purchases.
U.S. gold futures for June delivery settled down
$3.40 at $1,572.50 an ounce on Monday. Trading volume was about
40 percent below its 30-day average, preliminary Reuters data
Gold buying dwindled after George Soros told the South China
Morning Post that "gold was destroyed as a safe haven" as the
metal's recent lackluster performance showed it was unsafe.
Soros also said he expects gold to be supported because of
buying by central banks, but the metal could stay very volatile
with no definite trend on a longer-term basis.
Year to date, gold is down 6 percent after it had posted an
annual gain in each of the past 12 years.
ETF OUTFLOWS, FOMC MINUTES EYED
Investor interest continued to recede, with bullion holdings
at the world's major gold exchange-traded funds
edging down on Friday. They fell in the previous week to their
lowest since August 2012.
Commerzbank analyst Carsten Fritsch said that gold prices
looked vulnerable in the short term after last's week drop to
10-month low, and continued outflows of gold ETFs and bearish
bets by short-term investors could further pressure the metal.
The release of the FOMC meeting minutes on Wednesday is
likely to be the next main economic event for the market,
Among other precious metals, silver fell 0.3 percent
Platinum was up 0.2 percent to $1,533.99, and
palladium climbed 0.2 percent to $727.97.
2:56 PM EST LAST/ NET PCT LOW HIGH CURRENT
SETTLE CHNG CHNG VOL
US Gold JUN 1572.50 -3.40 -0.2 1566.60 1582.90 99,112
US Silver MAY 27.138 -0.082 -0.3 27.070 27.465 29,440
US Plat JUL 1537.00 1.50 0.1 1530.50 1544.80 7,339
US Pall JUN 729.80 5.90 0.8 721.30 739.20 3,584
Gold 1572.75 -8.75 -0.6 1567.93 1582.76
Silver 27.210 -0.090 -0.3 27.170 27.420
Platinum 1533.99 2.99 0.2 1532.00 1541.00
Palladium 727.97 1.56 0.2 724.25 735.75
TOTAL MARKET VOLUME 30-D ATM VOLATILITY
CURRENT 30D AVG 250D AVG CURRENT CHG
US Gold 109,161 193,013 173,130 13.94 -0.13
US Silver 37,937 49,676 52,334 20.42 -2.94
US Platinum 7,839 15,670 11,832 15.46 1.19
US Palladium 3,673 6,404 5,219
(Additional reporting by Clara Denina in London; Editing by