* Equities climb 2 percent, dollar index bounces from
8-month low
* Silver cuts losses, rises to fresh 5-1/2-month peak
(Updates prices; adds comment, second byline, NEW YORK
dateline)
By Marcy Nicholson and Jan Harvey
NEW YORK/LONDON, April 13 (Reuters) - The price of gold fell
from the previous day's three-week peak on Wednesday as the
dollar surged to a two-week high against the euro EUR= , and
major stock markets rose after surprisingly upbeat trade data
allayed concerns over China's economy.
Silver defied weakness in other precious metals to climb to
a new 5-1/2-month high, coming close to a 10-month top, after a
break through key chart resistance at $16 an ounce set it up for
further gains.
The U.S. dollar rose 0.9 percent against a currency basket
.DXY , having slid to its lowest in nearly eight months in the
previous session, while major stocks climbed. MKTS/GLOB FRX/
Spot gold XAU= was down 0.7 percent at $1,246.90 an ounce
at 1:58 p.m. EDT (1758 GMT), while U.S. gold futures GCv1 for
June delivery settled down 1 percent at $1,248.30.
"Stronger equities and a relatively stronger dollar have put
some pressure on gold," MKS' head of trading Afshin Nabavi said.
"But overall, we couldn't break $1,265 on the upside
yesterday, and gold looks like a good buy around $1,240, so I
would say that that is the trading range. Physical (demand)
continues to be very, very slow."
Among other precious metals, silver XAG= was up 0.9
percent at $16.31 an ounce, a 5-1/2-month high.
The gold/silver ratio, which measures the number of silver
ounces needed to buy an ounce of gold, slid to a 3-1/2-month low
as silver outperformed gold.
"I think it will probably outperform gold in the
intermediate term because base metals are finding a base and the
gold market is strong," said Joe Foster, portfolio manager and
strategist of VanEck International Investors Gold Fund in New
York.
"We're in a new positive trend. We'll spend the rest of the
year probably establishing a new trend for gold and silver."
Sharp inflows into silver-backed exchange-traded funds
suggest investor appetite for the metal has been strong.
Holdings of the silver ETFs tracked by Reuters have risen by 946
tonnes since the start of the year.
"Silver holdings of physically backed ETFs have gone through
the roof, while the ones in gold have come down," Natixis
analyst Bernard Dahdah said.
Platinum XPT= , which hit a one-month high on Tuesday at
$1,001.88, was up 0.3 percent at $999.01 an ounce. Palladium
XPD= was down 0.4 percent at $542.15 an ounce.
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GRAPHIC-Gold/silver ratio: http://link.reuters.com/kuq35s
GRAPHIC-2016 asset returns: http://reut.rs/1WAiOSC
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