* China Q4 GDP up 6.8 pct, slowest growth since 2009
* Spot gold recovered from session low of $1,082.55/oz
* Gold ETF inflow rises
(Updates prices; adds comment, second byline, NEW YORK
dateline)
By Marcy Nicholson and Clara Denina
NEW YORK/LONDON, Jan 19 (Reuters) - Gold steadied on
Tuesday, as the dollar turned lower, U.S. crude oil prices fell
below $29 per barrel and U.S. equity markets pared gains.
Gold prices were weak for most of the session after
fourth-quarter data showed that China had its slowest economic
growth since 2009, fanning stimulus hopes and spurring investors
towards riskier assets.
"We had a little more of a flight to risk and gold is
reflecting that, but not in a big way," said Bill O'Neill,
co-founder of commodities investment firm Logic Advisors in New
Jersey.
"We have a less frenetic tone than we ended last week with."
Spot gold XAU= was up 0.05 percent at $1,089.15 an ounce
at 2:47 p.m. EST (1947 GMT) after a lethargic session on Monday
when U.S. markets were shut for the Martin Luther King Jr.
holiday. U.S. gold for February delivery GCcv1 settled down
0.1 percent at $1,089.10.
Spot gold recovered after falling to a session low of
$1,082.55.
"As long as there is confusion about how China manages
exchange rate policy, how they will intervene in the stock
market and so on, there will be some safe-haven demand for
gold," Danske Bank senior analyst Jens Pedersen said, earlier in
the session.
"However, even though we have seen a re-pricing of the Fed's
rate hike this year (the market doesn't expect a full rate hike
before December), we haven't seen much dollar weakness and
that's because the market is expecting monetary easing from
other central banks."
The dollar turned lower, by as much as 0.1 percent against
a basket of major currencies .DXY , making gold slightly
cheaper for foreign holders.
"Most people are in doubt that the worst is over for the
metal, even if we have seen futures markets coming from record
short at the beginning of the year back to neutral and we have
seen a decent pick up in ETF's holdings in the past 10 days,"
Saxo Bank's Hansen said.
SPDR Gold Trust GLD , the world's largest gold-backed
exchange-traded fund, said its holdings rose 0.59 percent to
657.92 tonnes on Friday. ETF/GOL
Weak physical demand from top gold consumers China and India
has also limited gold's upside potential, analysts said, with
Chinese consumer spending dented by its slowing economy.
Spot platinum XPT= climbed 1.1 percent to $827.75 an ounce
after falling to a seven-year low of $812.95 in the previous
session.
Palladium XPD= rose 0.4 percent to $493.18 and silver
XAG= gained 1 percent to $14.06.