* Rising equities boost commodities, dampen dollar buying
* Traders eye U.S. Q2 GDP data due at 1230 GMT
* AngloGold Ashanti says will miss output target in 2009
(Updates throughout, changes dateline-pvs TOKYO)
By Jan Harvey
LONDON, July 31 (Reuters) - Gold edged higher in Europe on
Friday as rising stock markets knocked the dollar and boosted
interest in assets seen as higher risk, but trading was muted
ahead of economic data due later in the session.
Spot gold <XAU=> was bid at $935.00 an ounce at 0858 GMT,
against $933.30 an ounce late in New York on Thursday. U.S. gold
futures for August delivery <GCQ9> on the COMEX division of the
New York Mercantile Exchange rose 30 cents to $935.20 an ounce.
Gold is broadly tracking moves in the dollar within a narrow
range, while traders await the release of U.S. second-quarter
gross domestic product data due at 1230 GMT.
"There is clearly resistance at $940 after losses during the
week, but it is all very dollar-driven," said Andrey
Kryuchenkov, commodities analyst at VTB Capital.
"(The U.S. data) will add more volatility but... there is
still less interest in gold than equities," he added. "If the
macrodata comes out very positive, people will rush into
equities. For gold, resistance is very strong."
Dollar weakness tends to benefit gold, as it makes the metal
cheaper for holders of other currencies.
The dollar slipped on Friday, edging back towards the 2009
low it hit earlier this week against a basket of six major
currencies, as a fresh rise in stock markets sharpened appetite
for currencies seen as higher risk. []
World equities rose to 9-1/2 month highs as well-received
corporate earnings fuelled hopes of an economic recovery, while
European markets also turned positive. [] []
Stock markets' positive performance lifted other
commodities, with oil prices climbing back to $67 a barrel.
Strength in crude tends to benefit gold, which is often bought
as a hedge against oil-led inflation. []
SHARPER APPETITE
With improved appetite for risk currently benefiting both
commodities and equities, the U.S. GDP data is seen as key for
market direction.
"Market consensus is for a 1.5 percent contraction in the
U.S. economy in the second quarter," said Pradeep Unni, senior
analyst at Richcomm Global Services, in a note.
"As investors get further evidence of recovery, the hunt for
riskier assets begins and gold benefits in the process. However
given the lacklustre physical and investment demand, gains are
likely to be capped soon."
Buying of gold for jewellery and investment has been
lacklustre over the seasonally slow summer period. The world's
largest gold exchange-traded fund said it saw no fresh inflows
on Thursday. []
In India, the world's biggest bullion consumer last year,
gold demand tailed off after a brief pick-up in the middle of
the week as prices fell. []
On the supply side, Africa's top gold producer AngloGold
Ashanti <ANGJ.J> said it will miss its production target for the
year due to stoppages, and added that it will wind up its hedge
book of forward sales by 2014. []
Chief executive officer Mark Cutifani said he is optimistic
on the gold price, and expects the precious metal to trade
between $900-950 an ounce this year, rising to $1,000 in 2010.
Silver <XAG=> tracked gold higher to $13.54 an ounce against
$13.45. Platinum <XPT=> was at $1,181 an ounce against
$1,179.50, while palladium <XPD=> was at $256 against $256.50.
(Additional reporting by Martina Fuchs; Editing by William
Hardy)
