* Financial markets tread water, await clues on U.S. economy
* Coming up: U.S. preliminary Q2 GDP figures, 1230 GMT
* Coming up: Bernanke speaks on economic outlook, 1400 GMT
(Updates throughout, changes dateline from SINGAPORE)
By Jan Harvey
LONDON, Aug 27 (Reuters) - Gold held steady near $1,235 an
ounce in Europe on Friday as buyers took to the sidelines ahead
of key U.S. economic data due later in the session and a hotly
awaited speech from Federal Reserve chair Ben Benanke.
The precious metal remains on track to end the week in
positive territory after touching a two-month high at $1,244.00
an ounce on Thursday on concerns over economic growth.
Spot gold <XAU=> was bid at $1,235.50 an ounce at 0919 GMT,
against $1,234.94 late in New York on Thursday. U.S. gold
futures for December delivery <GCZ0> fell 20 cents to $1,237.50.
Financial markets are awaiting further clues on growth from
Bernanke, who will deliver his speech on the economic outlook to
the Federal Reserve Bank of Kansas City Economic Symposium at
1400 GMT. []
"Today's market action is likely to be glued to the what the
Fed chairman says about the U.S. economy," said Richcomm Global
Services senior analyst Pradeep Unni. "Any fresh fears from the
Fed, though unlikely, may lead to further gains in gold.
"Gold is vulnerable if investors have to sell positions to
cover any sharp fall in equity markets caused by continued
scepticism about the global economic recovery," he added.
European shares fell in early trade and were on track for a
third week of losses as investors worried about the pace of
economic recovery. []
Asian stocks earlier rounded off a week of losses on concern
that the U.S. economy may suffer another recession. []
On the currency markets, the dollar was little changed
against the euro <EUR=> but rose against the yen, trimming
earlier losses on wariness over possible measures from Japanese
authorities to stem the unit's rise. []
The financial markets are awaiting key U.S. data as well as
Bernanke's presentation.
"The main focus later on today will be the release of the
revision to U.S. second quarter GDP, followed soon after by
Bernanke's speech from Jackson Hole, Wyoming, in the afternoon,"
said CMC Markets analyst Mark Hewson in a note.
STIMULUS MEASURES
"Some commentators are suggesting that the Fed may be close
to introducing some new easing, or stimulus measures and today's
speech by Bernanke will hopefully give some insight into that."
Further quantitative easing would likely benefit gold,
potentially sending it back towards its current record high at
$1,264.90 an ounce, analysts said. []
Meanwhile, analysts were optimistic for a recovery in
physical demand from key consumers like India, where buying has
been pressured by high prices. A Reuters poll showed that
India's gold imports are seen rising to 504.5 tonnes this year.
[]
In supply news, South Africa's largest union on Friday
threatened to bring mining and other industries to a halt next
week in a strike to support labour action by 1.3 million state
workers. []
South Africa is one of the world's largest gold miners and
the biggest platinum producer by far.
Silver <XAG=> was at $18.91 an ounce versus $18.90. The
metal has retreated from the two-month highs it hit on Thursday
at $19.15 an ounce, but is still on track to rise more than 5
percent this week, its biggest one-week climb since early April.
Analysts report good fund buying of silver. Interest in
silver-backed exchange-traded funds increased, with holdings of
the largest, New York's iShares Silver Trust <SLV>, up nearly 46
tonnes so far this week. []
The ratio of gold to silver -- how many ounces of silver are
needed to buy an ounce of gold -- slipped to its lowest since
early August on Friday at 65.21 as the white metal became
increasingly expensive compared to gold.
Platinum <XPT=> was at $1,528 an ounce against $1,525, while
palladium <XPD=> was at $498 against $497.63.
(Reporting by Jan Harvey; Editing by Alison Birrane)
