* Dollar dips as equities recover initial losses on GDP data
* AngloGold Ashanti says will miss output target in 2009
(Updates prices, adds detail)
By Jan Harvey and Martina Fuchs
LONDON, July 31 (Reuters) - Gold rallied to session highs
above $940 an ounce on Friday, recovering earlier losses, as the
dollar slipped against a basket of six major currencies in the
wake of second-quarter GDP data from the United States.
Spot gold <XAU=> hit a peak of $941.90 an ounce, and was bid
at $938.20 an ounce at 1406 GMT, against $933.30 an ounce late
in New York on Thursday.
The dollar <.DXY> slipped against six major currencies 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.
U.S. gold futures for August delivery <GCQ9> on the COMEX
division of the New York Mercantile Exchange were up $3.40 to
$938.30 an ounce.
The dollar fell as equity markets recovered initial losses
in Europe and the United States after the data, as traders bet
the recession is moderating. Dollar weakness makes gold cheaper
for holders of other currencies, lifting prices. [] []
Oil prices remained lower, however, as investors worried
about demand weakness. Strength in crude can benefit gold, which
is often bought as an inflation hedge. []
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. []
TARGET MISSED
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=> edged down to $13.44 an ounce,
platinum <XPT=> was at $1,188 an ounce against $1,179.50, and
palladium <XPD=> was flat at $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)
