* 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 prices)
By Jan Harvey
LONDON, Aug 27 (Reuters) - Gold held just above $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 keenly
awaited speech from Federal Reserve chair Ben Bernanke.
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 $1,236.85 an ounce at 1147 GMT,
against $1,234.94 late in New York on Thursday. U.S. gold
futures for December delivery <GCZ0> rose $1.30 to $1,239.00.
Financial markets are looking for 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."
He added, "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."
European shares eased a touch in early afternoon 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
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 rise. []
STIMULUS MEASURES
"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.
"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 probably benefit gold,
potentially sending it back towards its record high at $1,264.90
an ounce, analysts said. []
Meanwhile, analysts were optimistic for a recovery in
physical demand from key consumers such as 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 $18.95 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 $1,527.50 an ounce against $1,525,
while palladium <XPD=> was at $497 against $497.63.
(Reporting by Jan Harvey; Editing by Jane Baird)
