* Gold largely unchanged on anemic U.S. economic data
* Allocation by institutional investors seen bullish
* Coming up: U.S. Consumer Prices Index due Friday
(Recasts, updates prices, adds comments, changes byline,
dateline, previous LONDON)
By Frank Tang
NEW YORK, July 15 (Reuters) - Gold prices were largely flat
on Thursday, as the metal continues to be rangebound on the
back of disappointing U.S. economic data and a lack of dramatic
movements from the outside markets.
Potential surprises from a U.S. consumer inflation report
on Friday could provide new catalyst to bullion, which is
traditionally used as a hedge against a steady price increase,
traders said.
Skepticism about economic recovery among institutional
investors such as CALPERS and U.S. banks, however, should push
gold prices higher in the long term on safe-haven demand, fund
managers said.
Spot gold <XAU=> was at $1,207.80 an ounce at 2:31 p.m. EDT
(1831 GMT) against $1,207.50 late in New York on Wednesday.
U.S. gold futures for August delivery <GCQ0> settled up $1.30
at $1,208.30.
Bullion gave back gains earlier in the session after
reports showed that new U.S. claims for jobless aid tumbled to
a near two-year low last week, and a slowdown in manufacturing
activity and flat industrial output. []
This week, gold has been largely treading water in a $30
range after news that 346 tonnes of gold swap operations
conducted by the Bank of International Settlements (BIS) in
recent months stirred fears of gold dumping. []
Gold rallied to an all-time high of $1,264.90 an ounce on
June 21, but the metal has not breached above $1,230 in two
weeks since then.
On Thursday, gold was also pressured by a weaker U.S. stock
market due to the anemic economic data, but the metal was
supported by a two-month high in the euro against the dollar.
[] []
Concerns over the economy tend to support gold, but the
precious metal will likely remain 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."
Among other commodities, oil futures fell along with weaker
economic sentiment, but the Reuters/Jefferies CRB commodity
index <.CRB> was up 0.8 percent in a mixed market. []
(Graphic http://link.reuters.com/hun72k)
ALLOCATION BY INSTITUTION INVESTORS
Higher allocation by wealthy institutional investors should
boost gold prices to new highs, money managers said.
"In the end, profit-sharing plans, 401(k) (retirement
plans) and larger institutions like Calpers would be allocating
larger amount to gold than they are today," said Robert Lutts,
president of Cabot Money Management, a $500 million wealth
manager.
On Thursday, JPMorgan Chase & Co <JPM.N> said it raised its
commodity trading risk in the second quarter, the first time in
nine months, but earned less from the sector as prices fell.
[]
Among other precious metals, silver <XAG=> was at $18.26 an
ounce against $18.24. Platinum <XPT=> was at $1,522.50 an ounce
against $1,519.50, while palladium <XPD=> was at $463.50
against $464.50.
Platinum group metals largely ignored M&A news, as shares
in North America's biggest PGM producer Stillwater Mining Co
<SWC.N> rose on market talk that the palladium and platinum
miner might be an acquisition target by Russian metals giant
Norilsk Nickel. <GMKN.MM> []
Prices at 2:26 p.m. EDT (1826 GMT)
LAST/ NET PCT YTD
CLOSE CHG CHG CHG
US gold <GCQ0> 1208.30 1.30 0.1% 10.2%
US silver <SIU0> 18.362 0.072 0.0% 9.0%
US platinum <PLV0> 1533.70 13.10 0.9% 4.3%
US palladium <PAU0> 467.20 1.40 0.3% 14.3%
Gold <XAU=> 1209.05 1.55 0.1% 10.3%
Silver <XAG=> 18.32 0.08 0.4% 8.8%
Platinum <XPT=> 1527.50 8.00 0.5% 4.2%
Palladium <XPD=> 464.00 -0.50 -0.1% 14.4%
Gold Fix <XAUFIX=> 1208.00 -3.75 -0.3% 9.4%
Silver Fix <XAGFIX=> 18.42 13.00 0.7% 8.4%
Platinum Fix <XPTFIX=> 1530.00 1.00 0.1% 4.4%
Palladium Fix <XPDFIX=> 470.00 2.00 0.4% 16.9%
(Additional reporting by Jan Harvey in London; Editing by Lisa
Shumaker)
