PRECIOUS-Gold steadies; looks to dollar for direction

* Gold prices await direction from currency markets * Indian gold demand abates as prices rise above $1,040/oz * Silver ETF reports 131-tonne inflow

(Updates throughout, changes dateline from TOKYO)

By Jan Harvey

LONDON, Oct 30 (Reuters) - Gold prices steadied just shy of $1,045 per ounce on Friday, consolidating the previous session's 1.7 percent gain after data showed the U.S. crawling out of recession, with investors eyeing the dollar for fresh direction.

Gold moves in a close inverse relationship with the dollar, as the metal becomes cheaper for holders of other currencies when the U.S. unit weakens.

Spot gold was bid at $1,044.25 an ounce at 1045 GMT, against $1,044.95 late in New York on Thursday. U.S. gold futures for December delivery GCZ9 on the COMEX division of the New York Mercantile Exchange fell $1.80 to $1,045.30 an ounce.

"At the moment, the metal and the dollar are moving in line with equities, so it is worth keeping an eye on stocks later today when U.S. data is due," said Alexander Zumpfe, precious metals trader at Heraeus.

Several U.S. data releases are expected on Friday, including September personal income and consumption at 1230 GMT, Chicago manufacturing figures at 1345 and the Reuters/University of Michigan Surveys October final consumer sentiment index at 1355.