NEW YORK July 8 (Reuters) - U.S. gold futures turned lower on Thursday in a quick bout of selling attributed to a large seller followed by shorter term profit-takers in thin summer dealings, but traders said to keep close watch on the downside target at $1,185 an ounce. * For the latest detailed report, click on [GOL/]. GOLD * August COMEX gold futures GCQ0 were down $4.10 at $1,194.80 an ounce on the COMEX metals division of the New York Mercantile Exchange. * Range extended down to a low at $1,190.20 from $1,208.20 an ounce. * A sudden bout of selling that floor traders said came from a large seller pulled gold into negative territory. * Other short-term sellers came in to grab quick profits off the high once the downside was activated - traders. * Gold remains somewhat rangebound. A break of Wednesday's support level at $1,185 an ounce, a 6-1/2-week low, could lead to selling down to the $1,166 area - traders. * Traders warn to keep close watch, though prices seem to have stabilized after quick selloff. * Thin market conditions, low options volatility make gold vulnerable to flash selling - traders. * Sellers seemed to be in the fray looking for short-term gain, not looking for cash as was the selling that took prices down to recent 6-1/2-week lows - traders. * Early highs reached after U.S. jobless claims report - traders. * New U.S. claims for unemployment insurance fell more than expected last week, while the number of people continuing to receive benefits in the final week of June was the lowest in seven months. [ID:nN07157763] [ID:nWAL7IE6BY] * Providing underpinning, the euro hit a two-month high against the dollar amid a broad increase in risk appetite after strong Australian employment data and a larger-than-expected drop in U.S. weekly jobless claims. [USD/] * Also giving support, U.S. stocks rose after several top U.S. retail chains reported better-than-expected sales in June and improved jobless claims. [.N] * COMEX estimated volume at 39,085 lots at 9 a.m. EDT (1300 GMT). * Spot gold XAU= at $1,193.05 an ounce by 9:51 p.m. (1351 GMT), off $1,201.85 an ounce late in the previous session. * London afternoon gold fix XAUFIX= at $1,201.25 an ounce. SILVER * COMEX September silver SIU0 fell 12.0 cents to $17.88 an ounce. * Range spanned $17.7650 to $18.20 an ounce. * Silver following gold's moves. * COMEX estimated 9 a.m. EDT (1300 GMT) volume at 7,371 lots. * Spot silver XAG= was down at $17.82 an ounce from $18.00 an ounce late in the previous session. * London silver fix XAGFIX= was higher at $18.00 per ounce. PLATINUM * NYMEX October platinum PLV0 lost $6.40 to $1,520 an ounce. * Spot platinum XPT= was down at $1,511 an ounce from $1,523.50 an ounce in late Wednesday business. PALLADIUM * September palladium PAU0 dropped $1.40 to $440.95 an ounce. * Spot palladium XPD= was lower at $438.50 an ounce than $446.0 in late Wednesday trade. Prices at 10:32 a.m. EDT (1432 GMT) LAST NET PCT YTD CHG CHG CHG US gold GCQ0 1192.50 -6.40 -0.5% 8.8% US silver SIU0 17.860 -0.140 -0.8% 6.1% US platinum PLV0 1518.30 -8.10 -0.5% 3.2% US palladium PAU0 440.95 -1.40 -0.3% 7.9% Gold XAU= 1192.60 -9.25 -0.8% 8.8% Silver XAG= 17.81 -0.19 -1.1% 5.8% Platinum XPT= 1509.50 -14.00 -0.9% 3.0% Palladium XPD= 437.08 -8.92 -2.0% 7.8% Gold Fix XAUFIX= 1193.50 -7.75 -0.6% 8.1% Silver Fix XAGFIX= 18.00 35.00 194.4% 5.9% Platinum Fix XPTFIX= 1528.00 2.00 0.1% 4.2% Palladium Fix XPDFIX= 447.00 0.00 0.0% 11.2% (Reporting by Carole Vaporean; Editing by Walter Bagley) Z

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