* Like gold, U.S. equities ended modestly higher in range
* SPDR gold ETF sees fresh outflow as haven appeal wanes
* Next week: U.S. reports include retail sales, inflation
data.
(Recasts, updates prices and comments, changes byline,
dateline, headline)
By Carole Vaporean
NEW YORK, July 9 (Reuters) - Gold briefly rose 1.5 percent
to four-day highs above $1,210 an ounce on Friday, but selling
around that level kept price gains capped.
Uncertainty surrounding the global economy and slow summer
trading sessions kept prices, both in precious metals as well
as correlated markets such as equities in check.
Analysts polled said the metal was expected to stay in the
current range until clearer signs of economic direction
emerge.
"The summer is going to grind its way through. And gold
will stay steady regardless of what happens in stocks or the
economy. When we get into the fall that will be the telltale
time in the world," said Meyers.
Spot gold <XAU=> advanced to $1,209.05 an ounce by 2:38
p.m. (1838 GMT) from previous session's late quote in New York
at $1,196.48 an ounce. Earlier, it touched $1,213.35, its
highest since July 5 against $1,196.48 late Thursday trade.
U.S. gold futures for August delivery <GCQ0> firmed $13.70
to settle at $1,209.80 on the New York Mercantile Exchange's
COMEX division, and earlier hit a four-day high at $1,214.10.
Traders said some short-covering and momentum buying after
bullion broke above the key $1,200 an ounce accelerated gains,
but added no sizable rise was expected.
For now, analysts and traders have cited the $1,200 an
ounce area as the midpoint, that should define gold's trading
range for the time being.
The yellow metal's ability to avoid a breakdown below this
week's support low at $1,185 an ounce, a level dating back
about 6 weeks, and then claim higher highs in each of the last
two sessions, indicated it should maintain current ranges.
Until the outlook for the U.S. and global economy becomes
clearer, analysts said they expect gold should trade mostly
sideways, though its trading band would be more likely to
expand to the upside.
Next week in the U.S., several reports on both the retail
sector and on inflation should provide some clarity.
On Wednesday, retail sales are due, while producer price
measures will be released on Thursday and consumer price gauges
are due on Friday, all at 8:30 a.m. EDT (1230 GMT).
But, regardless, analysts said underlying cautiousness in
the market would keep investors buying gold.
"Gold will be the beneficiary in any environment. If it's
economic expansion, people will have money to invest and gold
will benefit from that. If there's a weak environment, tangible
assets are a good play as a safehaven," said Meyers.
Like gold, Wall Street closed out its best week in a year
on Friday, snapping back from a long stretch of selling, as
investors looked ahead to the start of the earnings season.
[]
"The overall picture I think still points to cautiousness,
which is positive for gold," said David Wilson, an analyst at
Societe Generale.
ETF HOLDINGS RETREAT
Holdings of the world's largest gold-backed exchange-traded
fund, New York's SPDR Gold Trust <GLD>, slipped again on
Thursday, dipping 0.445 tonnes to 1,316.036 tonnes.
The fund's holdings have retreated 4.4 tonnes from the
record 1,320.436 tonnes they stood at in late June, as the safe
haven-related inflows seen in recent months dried up.
[]
Silver <XAG=> prices firmed slightly in line with gold, bid
at $18.08 an ounce against $17.89 late in New York on
Thursday.
Holdings of the largest silver-backed ETF, the iShares
Silver Trust <SLV>, have also dropped just over 25 tonnes since
the end of June to 9,151.78 tonnes.
Platinum <XPT=> was at 529.50 an ounce against $1,517,
while palladium <XPD=> rose to $455 against $445.50.
Prices at 2:50 p.m. EDT (1657 GMT)
LAST/ NET PCT YTD
CLOSE CHG CHG CHG
US gold <GCQ0> 1209.80 13.70 1.1% 10.4%
US silver <SIU0> 18.073 0.201 0.0% 7.3%
US platinum <PLV0> 1533.20 16.80 1.1% 4.2%
US palladium <PAU0> 456.95 12.55 2.8% 11.8%
Gold <XAU=> 1208.75 12.27 1.0% 10.3%
Silver <XAG=> 18.08 0.17 1.1% 7.4%
Platinum <XPT=> 1530.00 13.00 0.9% 4.4%
Palladium <XPD=> 455.00 9.50 2.1% 12.2%
Gold Fix <XAUFIX=> 1208.75 12.50 1.0% 9.5%
Silver Fix <XAGFIX=> 17.87 -13.00 -0.7% 5.2%
Platinum Fix <XPTFIX=> 1527.00 2.00 0.1% 4.2%
Palladium Fix <XPDFIX=> 454.00 6.00 1.3% 12.9%
(Additional reporting by Jan Harvey and Humeyra Pamuk in
London; )
