Gold was steady in early European trade on Friday, as investors awaited US second quarter GDP data to find out more about the health of the world's largest economy.
"Today's story is the growth data," a Europe-based trader said. "We've lost direction a bit and now people do not want to make a move ahead of the data," he said.
Growth in the US economy probably slowed in the second quarter amid a cooling in consumer spending and a wider trade deficit.
Bullion struck a lifetime high at $1 264.90 in June on worries the debt crisis in Europe was spreading and the US economy was slowing.
But a string of Europe's largest firms issued surprisingly upbeat profit reports on Thursday, bolstering an abrupt renewal of investor confidence in the region after months of debt turmoil and fears for the euro.
"People are still cautious. Have all our problems regarding Europe gone away? I'm not so sure," the trader said. "I don't expect gold to fall too far," he said, adding that when bullion struck a new low, bargain hunters piled in.
The world's largest gold-backed exchange-traded fund, SPDR Gold Trust, said its holdings were unchanged at 1,282.279 tonnes. The holdings hit a record at 1,320.436 tonnes on June 29.
PRICES
* Spot gold was at $1,168.60 an ounce by 08:31 SA time, versus $1,168.05 an ounce last quoted in New York on Thursday, when it rose after St. Louis Fed President James Bullard said he was worried about the risks the United States could fall into a Japan-style quagmire of falling prices.
* Silver was at $17.57 an ounce versus $17.59 an ounce on Thursday.
* Platinum was at $1,552 an ounce versus $1,560 an ounce while sister metal palladium edged down to $483 an ounce from $485.28 an ounce.
DATA/EVENTS
* First reading on US second quarter GDP due at 14:30 SA time.
* US ISM NewYork for July due at 14:30 SA time.
* US Chicago PMI for July due at 15:45 SA time.
* US Thomson Reuters/University of Michigan's survey of consumers for July due at 15:55 SA time.
* Eurozone inflation for July due at 11:00 SA time.
* Eurozone unemployment rate for June due at 11:00 SA time.
MARKET NEWS
* The dollar fell to an eight-month low against the yen on Friday, hurt by selling from Japanese exporters and concerns that US GDP data would add to signs of fading momentum for the US economic recovery.
The euro slipped 0.1 percent against the dollar in early Asian trade to $1.3060, close to a 12-week high of $1.3107 marked on Thursday.
* Asian stocks sagged as worries US growth data may surprise on the downside and downbeat comments from a Federal Reserve official gave investors reason to book profits from a steady rally this month.
* Oil slipped on Friday, heading for a fourth consecutive weekly settlement within the $75-$80 range, as investors focused on a slowing economy and rising inventories in top consumer the United States.
* European shares are set to fall for a third straight session on Friday, after US stocks slipped on Thursday and Asian stocks fell, following downbeat comments from a Federal Reserve official as investors awaited US GDP numbers.
FUNDAMENTALS
* A sharp drop of bullion holdings in the world's biggest gold-backed exchange traded fund combined with a loss of COMEX open interest indicated investors are moving out of the precious metal into other assets such as equity markets.
* A new speculative position limit regime will also apply to metals and soft agricultural commodities, a top official at the Commodity Futures Trading Commission told Reuters Insider on Thursday.
* Anglo American: Says H1 underlying EPS $1.84 versus 91 cents last year (company consensus $1.73).
* Says H1 underlying earnings $2.2 billion.
TECHNICALS
* Gold support at $1 148.77, resistance at $1 175, 14-day RSI at 65.3.
* Silver support at $17.38, resistance at $18.29, 14-day RSI at 65.2.
* Platinum support at $1 523, resistance at $1 562, 14-day RSI at 59.1. - Reuters
