* 'Risky' assets slip on China growth data, June Fed minutes
* Industrial commodities trend lower but gold climbs
* Aquarius Platinum mine stays closed a week after deaths
(Updates, adds comment, changes dateline from SINGAPORE)
By Jan Harvey
LONDON, July 15 (Reuters) - Gold rose in Europe on Thursday
as investors ditched assets perceived as risky after the Federal
Reserve suggested more measures may be needed to help the U.S.
economy and after soft Chinese growth data.
As the dollar, stocks and industrial commodities decline,
investors are turning to gold, analysts said.
Spot gold <XAU=> was bid at $1,212.10 an ounce at 0950 GMT,
against $1,207.50 late in New York on Wednesday. U.S. gold
futures for August delivery <GCQ0> rose $5.10 to $1,212.10.
The dollar hit a two-month low against the euro <EUR=> and a
basket of currencies <.DXY> on Thursday after cautious U.S.
Federal Reserve minutes triggered concerns about the outlook for
the U.S. economy. []
Chinese data also showed the country's economic growth
moderated to 10.3 percent in the second quarter from 11.9
percent in the first. []
"We are essentially banking on China's growth to counteract
slow growth in the United States and Europe, so a slower China
will get investors jittery again," said Societe Generale analyst
David Wilson.
The softer dollar would also have helped gold, he said.
Weakness in the U.S. unit boosts gold's appeal as an alternative
asset, and makes dollar-priced commodities cheaper for holders
of other currencies.
Despite dollar weakness, oil fell for a second day to below
$77 after the slowdown in Chinese economic growth in the second
quarter and after U.S. Federal Reserve minutes renewed concerns
about the recovery of the world economy. []
Base metals like copper, nickel and zinc also fell. []
Investor caution also knocked European shares, following on
from a weak session in Asia. This also lifted gold. []
[]
"Rising fears regarding a relapse into recession might lead
to rising investment demand, and thus strengthen the gold
price," Commerzbank said in a note.
CREEP HIGHER
From a technical perspective, the precious metal is also
poised to creep higher after its sharp correction from record
highs at $1,264.90 an ounce in late June.
Chart support combined with reemerging physical demand
prevented the metal from falling substantially below $1,200 an
ounce, and it has sucessfully held above that level for the last
two sessions.
"With daily momentum pointed higher and the market pulling
away above trendline support at $1,182, we are maintaining our
near-term focus higher towards $1,225/27," technical analysts at
Barclays Capital said in a note.
"Retracement resistance beyond $1,227 is at $1,235, and it
would take a recovery above this latter level to suggest that
gold is primed to post new 2010 highs," they added.
Among other precious metals, silver <XAG=> was bid at $18.30
an ounce against $18.24, firming in line with gold.
"Our ranges for silver over the past two months have been
narrowing as we see $17.56 and $19.24 as the closest key
levels," ScotiaMocatta said in a note.
"The gold-silver ratio decreased for the third consecutive
day with key support lying at 65.53, the multi-June low."
Platinum <XPT=> was at $1,523.10 an ounce against $1,519.50,
while palladium <XPD=> was at $463.70 against $464.50.
Aquarius Platinum <AQP.L>, the world's No. 4 primary
platinum producer, said on Thursday operations at a shaft of its
Marikana mine in South Africa were still suspended a week after
the death of five miners. []
(Reporting by Jan Harvey; Editing by Sue Thomas)
