PRECIOUS-Gold steadies $1,040/oz, ETF holdings dip 0.915 T

TOKYO, Nov 2 (Reuters) - Gold prices steadied above $1,040
per ounce on Monday, with its upside capped by a firmer dollar,
which reduces the precious metal's allure as an alternative
asset.

FUNDAMENTALS

* Spot gold XAU= was almost flat at $1,044.35 per ounce at
0003 GMT, compared to New York's notional close of $1,044.40.

* It hit a three-week low of $1,025.75 last week.

* Bullion fell about 1 percent last week, marking its first
weekly loss since the week of Sept. 25, following four
consecutive weeks of gains.

* U.S. gold futures for December delivery GCZ9 stood at
$1,045 per ounce, up 0.4 percent from Friday, when the contract
fell $6.70 to $1,040.40 on the COMEX division of the New York
Mercantile Exchange.

* The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust (GLD: Quote, Profile, Research), said its holdings fell 0.915 tonnes on Friday,
making the total weekly decline to 4.575 tonnes. [GOL/SPDR]

* Noncommercial net long positions on U.S. gold futures fell
to 241,777 lots in the week ending on Oct 27 from 250,107 lots,
weekly report by the Commodity Futures Trading Commission showed.
[ID:nN30320587]

MARKET NEWS

* Japan's Nikkei share average .N225 fell 2.4 percent.
[.T].

* U.S. Dow industrials index suffered it worst slide since
July on Friday on concerns that the economic recovery won't be
robust enough to sustain a seven-month stock rally, while
financials sank on renewed worries about Citigroup's balance
sheet. [.N]

* The dollar and yen rallied on Friday as a sharp sell-off in
the stock market and uncertainty about the economy boosted
safe-haven demand for the U.S. and Japanese currencies. [USD/]

DATA EVENTS

* The following data is expected on Monday: ECON

- IMF to hold economic forum in Tokyo (0500 GMT)

- Swiss Oct PMI (0830 GMT)

- Germany manufacturing PMI (0853 GMT)

- Euro zone manufacturing PMI (0858 GMT)

- UK manufacturing PMI (0928 GMT)

- U.S. construction spending for Sept (1500 GMT)

- U.S. ISM for Oct (1500 GMT)

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PRICES

Precious metals prices at 0000 GMT
Metal Last Change Pct chg Day ago pct MA 30 RSI
Spot gold $1043.45 -$0.95 -0.09% +16.33% $860.10 50
Spot silver $16.30 $0.03 +0.18% +36.06% $11.29 35
Spot plat $1316.50 -$6.00 -0.45% -0.45% $1329.28 43
TOCOM gold 3,023 -36 -1.18% -1.63% 3,021 46
TOCOM plat 3,815 -45 -1.17% -1.68% 3,855 46
Currencies
Euro/dlr $1.471 -$0.001 -0.04% -0.04%
Dlr/yen 89.74 0.11 +0.12% -0.38%
(Reporting by Risa Maeda; Editing by Edwina Gibbs)