* Gold eases on profit taking, weak physical gold
* Reuters precious metals price poll shows fresh optimism
* Market awaits U.S. corporate earnings, eyes inflation
(Recasts, updates with closing prices, market activity,
changes dateline from LONDON)
By Frank Tang
NEW YORK, July 16 (Reuters) - Gold futures ended lower
after trading in a tight range on Thursday as bullion investors
took profits while looking for signs of economic strength to
fuel the metal's recent rally amid inflation concerns.
On Wednesday, gold rose to a two-week high above $940 an
ounce on a tumbling dollar and inflationary U.S. economic data
that sent Wall Street nearly 3 percent higher. U.S. stocks
ended 1 percent higher on Thursday.
Bullion has recently been underpinned by overall economic
optimism. The metal, which is viewed as an inflation hedge, has
recently been weighed down by the prospect of deflation, or a
downward spiral in prices.
U.S. August futures <GCQ9> settled down $4 at $935.40 an
ounce on the COMEX division of the New York Mercantile
Exchange. Spot gold <XAU=> was at $937 an ounce at 3:28 p.m.
EDT (1928 GMT), versus $938.45 an ounce late in New York on
Wednesday.
A poll of precious metals analysts and traders conducted by
Reuters showed sentiment towards the assets has improved since
the last survey in January. []
The average 2009 gold forecast taken from the poll rose 7.8
percent to $930 an ounce, while the expected silver price rose
by 18 percent.
"The major factor for the precious metals markets will be
the recovery of the global economy and inflation fears," said
Peter Fertig, a consultant at Quantitative Commodity Research.
Gold slipped on Thursday with lackluster demand for jewelry
and bullion to back exchange-traded funds, traders said.
Indian gold prices were supported by the weak rupee, but
buyers stayed away during a seasonally weak period for sales.
Holdings of the largest gold ETF, the SPDR Gold Trust
<GLD>, were unchanged on Wednesday. [] []
"I am surprised gold is at this high level, given the lack
of demand," said Commerzbank analyst Carsten Fritsch. "We have
seen outflows from the SPDR of 15 tonnes on Tuesday alone, and
there is still lackluster jewelry demand."
"The only factor supporting gold is dollar weakness," he
said.
EARNINGS DUE
Investors are awaiting a further raft of earnings due in
the United States on Friday, with Citigroup <C.N>, General
Electric <GE.N> and Bank of America <BAC.N> all due to release
figures.
Among other precious metals, platinum <XPT=> was at
$1,160.50 an ounce against $1,156, while palladium <XPD=> was
at $246 against $244.50 and silver <XAG=> was at $13.27 an
ounce against its previous session's finish of $13.25.
The Reuters poll showed platinum price forecasts were on
average 17 percent higher than in January, at $1,130 an ounce
in the full year, while the average palladium forecast was up
nearly 10 percent at $230.
While both metals are expected to benefit from the
improving outlook for car sales, industrial demand for the
metals used in autocatalysts is not expected to recover until
2010.
(Additional reporting by Jan Harvey in London; Editing by
Walter Bagley)
