* Euro, equities weaken after U.S. GDP data, knocking gold
* AngloGold Ashanti says will miss output target in 2009
(Updates prices, adds comment, detail of U.S. GDP data)
By Jan Harvey and Martina Fuchs
LONDON, July 31 (Reuters) - Gold pared gains on Friday as
the euro retreated from highs against the dollar in the wake of
second-quarter GDP data from the United States.
Spot gold <XAU=> was bid at $935.10 an ounce at 1325 GMT,
against $933.30 an ounce late in New York on Thursday. It
earlier hit a session high of $939.65. U.S. gold futures for
August delivery <GCQ9> on the COMEX division of the New York
Mercantile Exchange edged up 50 cents to $935.40 an ounce.
The euro gave up ground against the U.S. currency after data
released on Friday showed the U.S. economy contracted at a
slower-than-expected pace in the second quarter, which analysts
said backs views the recession is winding down. []
"The U.S. GDP data was fairly good; it is still contracting
but at a much slower pace, much better than the first quarter,"
said Andrey Kryuchenkov, an analyst at VTB Capital.
"But the personal consumption data wasn't so good," he
added. "Inflation is not there yet, that would weigh on gold."
Gold is broadly tracking moves in the dollar within a narrow
range. Dollar weakness tends to benefit gold, as it makes the
metal cheaper for holders of other currencies. []
The dollar fell versus a basket of currencies in earlier
trade as a rise in stock markets sharpened appetite for
currencies seen as higher risk.
But equity markets fell in Europe and stock index futures
weakened in the United States after the data, which also showed
the economy contracted more than previously reported in the
first quarter of the year. []
Oil prices also fell more than 2 percent as investors
worried about demand weakness. Strength in crude can benefit
gold, which is often bought as an inflation hedge. []
DEMAND TAILS OFF
Underlying demand for gold remains weak, with a pick-up in
sales in leading gold market India midweek tailing off towards
the weekend and flows into gold-backed exchange-traded funds
still stagnant. [] []
But a World Gold Council official told Reuters India's gold
demand may pick up from August as pent-up demand is seen
boosting sales. []
Meanwhile Africa's top gold producer AngloGold Ashanti said
it will miss its output target for the year, adding that it will
wind up its hedge book of forward sales by 2014. []
Elsewhere silver <XAG=> was flat at $13.45 an ounce,
platinum <XPT=> was at $1,184.50 an ounce against $1,179.50, and
palladium <XPD=> was at $255.50 against $256.50.
Aquarius Platinum Ltd <AQP.AX> said on Friday its quarterly
attributable production was up one percent from the previous
quarter to 98,258 ounces. []
Prices of platinum -- consumed primarily by the car industry
for use in catalytic converters -- edged above $1,200 earlier
this week on hopes economic stability would lift car demand.
But despite an expected fourth-quarter recovery in the
European car market, analysts were cautious towards platinum.
VM Group analyst Matthew Turner said a third-quarter demand
slump in Europe, a key market for platinum as its cars are
usually diesel-fuelled and therefore use a higher proportion of
the metal in their autocatalysts, could hurt prices.
"In the last few months car production has started to pick
up again," he said. "The problem is that a lot of the car sales
in Europe are artificially boosted by government incentive
schemes. That is probably bringing demand forward, it's not
increasing demand."
(Editing by Peter Blackburn)
