* Dollar hits two-month low after June Fed minutes
* Other markets swing higher after JPMorgan earnings
* Technical factors seen as supportive of some gains
(Releads, updates prices, adds comment)
By Jan Harvey
LONDON, July 15 (Reuters) - Gold rose in Europe on Thursday
as the dollar slipped to a two-month low against the euro, under
pressure after minutes from the June Federal Reserve meeting
heightened concerns over the U.S. economy.
Spot gold <XAU=> was bid at $1,213.20 an ounce at 1144 GMT,
against $1,207.50 late in New York on Wednesday. U.S. gold
futures for August delivery <GCQ0> rose $6.60 to $1,213.60.
While the usual inverse relationship between gold and the
dollar has softened in recent months as both benefitted from
risk aversion, weakness in the U.S. unit remains supportive of
prices. However, gold remains stuck in a narrow range.
"Bargain hunters want to buy it around $1,200, and (at)
$1,217, profit takers are all lined up," said Afshin Nabavi,
head of trading at MKS Finance.
"Overall a break above $1,225 should trigger more interest
from the buyers who are currently on the sidelines. On the
downside, $1,200 to $1,185 should bring in some physical related
buying."
The dollar weakened against the euro <EUR=> and a basket of
six 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 wider markets managed to shrug off early weakness to
rise in afternoon trade, with European shares moving into
positive territory as investors digested strong quarterly
results from JPMorgan Chase & Co <JPM.N>. []
U.S. stock futures also rose, pointing to a higher opening
on Wall Street later in the session. []
Oil prices reversed early losses and rose towards $78 a
barrel on Thursday after a bounce in equities overshadowed
earlier news pointing to flatter economic growth in China. []
Among other commodities, copper prices remained lower but
other base metals moved into positive territory. []
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For a graphic showing the relative price performance of key
commodities so far this year, click on:
http://graphics.thomsonreuters.com/10/CMD_PRFG0510.html
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CREEP HIGHER
From a technical perspective, gold is poised to creep higher
after its sharp correction from record highs at $1,264.90 an
ounce in late June.
Chart support combined with re-emerging physical demand
prevented the metal from falling substantially below $1,200 an
ounce, and it has successfully 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 $18.31
an ounce against $18.24, firming in line with gold. Platinum
<XPT=> was at $1,524.10 an ounce against $1,519.50, while
palladium <XPD=> was at $464.10 against $464.50.
(Reporting by Jan Harvey; Editing by Alison Birrane)
