* Equities rise after U.S. GDP numbers, euro/dollar steady
* U.S. growth slows more sharply than first thought
* Coming up: Bernanke speaks on economic outlook, 1400 GMT
(Updates prices, adds comment)
By Jan Harvey
LONDON, Aug 27 (Reuters) - Gold hit session highs on Friday
after data showed U.S. growth slowed more sharply than initially
thought in the second quarter, but gains were limited ahead of a
keenly awaited speech from Federal Reserve chair Ben Bernanke.
Spot gold <XAU=> was bid at $1,239.75 an ounce at 1347 GMT,
against $1,234.94 late in New York on Thursday. U.S. gold
futures for December delivery <GCZ0> rose $4.00 to $1,241.70.
ANZ analyst Peter Hillyard said investors remained confident
in the precious metal's bull run. "The market is ebbing and
flowing in an upward move," he said.
"Between here and $1,255/56, it is going to have to do some
work. Once we get above $1,256, I don't think anything is going
to stop it until it gets to $1,300."
Gold broke out of the relatively narrow range it had kept to
for much of the summer to hit a two-month high of $1,244 an
ounce on Thursday as investors fretted about the U.S. economy.
Data from the Commerce Department showed on Friday that
gross domestic product expanded at a 1.6 percent annual rate
instead of the 2.4 percent pace it had estimated last month.
[]
The data, which was marginally better than expected,
initially sent gold lower, but the precious metal later jumped.
The euro <EUR=> steadied against the dollar after initially
fluctuating in the wake of the report. []
Meanwhile European shares rose and U.S. stock index futures
extended gains amid relief that the numbers were not as bad as
feared. [] []
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. []
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,"
said CMC Markets analyst Mark Hewson in a note.
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 $19.07 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 $1,522.50 an ounce against $1,525,
while palladium <XPD=> was at $501 against $497.63.
(Reporting by Jan Harvey; Editing by Alison Birrane)
