* Gold eases back below $1,200
* For the technicals on gold, click []
* Coming up: ECB press conference
(Updates prices)
By Amanda Cooper
LONDON, July 8 (Reuters) - Gold eased below $1,200 an ounce
on Thursday, as growing optimism over the global economy limited
investor interest in perceived safe-haven assets, although
consumers helped contain losses.
Global equities <.MIWD00000PUS> rose to their highest in
seven trading sessions, while U.S. stock futures pointed to a
positive start on Wall Street as some of the largest U.S.
retailers reported June same-store sales, which helped reinforce
confidence in the upcoming quarterly reporting season.
Spot gold <XAU=> touched $1,197.85 an ounce by 1235 GMT,
compared with $1,201.85 late in New York on Wednesday, when it
hit a low of $1,185.05, its lowest since May 25 and around 6
percent below late June's record high.
U.S. gold futures for August delivery <GCQ0> dipped $1.2 an
ounce to $1,197.80 an ounce.
"I'm still friendly towards gold. We haven't sorted out any
of the problems inherent in the economy in terms of sovereign
debt, liquidity issues and so on. There will be more of that
when the stress tests get underway," said Credit Agricole
analyst Robin Bhar.
"I just feel that we could be near the top of the range for
gold. Maybe there are factors that will help support it, but I
don't think you've got the fear factor any more, the end of the
world, Armaggedon to really drive gold significantly higher."
Gold prices have hit lifetime highs on worries the European
debt crisis would spread and the U.S. economy was slowing.
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Both the European Central Bank and the Bank of England left
interest rates unchanged earlier in the day. Investors were
waiting to hear from ECB President Jean-Claude Trichet.
He is likely to face pressure to say if the central bank was
worried by rising bank-to-bank lending rates, whether it will
extend liquidity support, and how it sees Europe's bank stress
tests panning out.
CALM RETURNS
A lot of nervousness in the market had also stemmed from
concern that debt-laden nations such as Portugal, Spain or
Greece would be unable to access funding.
But a series of solid government bond auctions from both
peripheral and core euro zone states, along with the smooth
repayment of nearly half a trillion euros' worth of emergency
one-year loans by the banks to the European Central Bank last
week have gone a long way towards soothing that concern.
Helping to keep gold relatively steady was a pick-up in
consumer activity in key buying regions in line with the
pullback in the price.
The physical sector saw buying interest from Indonesia and
Thailand, but consumers were not too aggressive after prices
crossed $1,200 level again, while holdings of gold in the
world's largest gold-backed exchange-traded fund, SPDR Gold
Trust <GLD.P> were unchanged at 1,316.481 tonnes, near late
June's record high. []
"There's still some buying but I guess most people are now
waiting for delivery. Physical buying is still there and my
premiums have gone up to 80 cents," said a dealer in Singapore.
Jewellers in India have been stocking up ahead of religious
festivals, and other physical buyers in Asia snapped up bullion
after prices fell. [] []
India, which accounts for more than 20 percent of global
demand, will celebrate the Hindu festival of Raksha Bandhan on
Aug 24, Janmasthami and Ganesh Chaturthi in September.
[]
A firmer euro also supported gold. The single currency rose
to a two-month high against the dollar on Thursday, reflecting
the improved tolerance for risk. []
Across the rest of the precious metals complex, silver was
bid at $17.94 an ounce, compared with $18.00 on Wednesday, while
platinum <XPT=> was at $1,523 an ounce, versus $1,523.50 and
palladium <XPD=> was at $443.50, compared with $446.00.
(Editing by Keiron Henderson)
