PRECIOUS-Gold dips as encouraging China data stokes risk-on sentiment

* China GDP in-line with consensus, monthly activity data
upbeat
* Money managers cut net longs in gold in week ended July 9
- CFTC
* Platinum hits more than one-week high

(Updates prices)
By Brijesh Patel
July 15 (Reuters) - Gold prices slipped on Monday,
consolidating above $1,400 pivot, as key China data assuaged
concerns about global economic slowdown and boosted appetite for
riskier assets.
Spot gold XAU= was down 0.2% at $1,413.20 per ounce, as of
0717 GMT.
U.S. gold futures GCv1 were up 0.2% at $1,415.10 an ounce.
China's June industrial output climbed 6.3% from a year
earlier, beating a 5.2% forecast, while January-June fixed-asset
investment rose 5.8% from the same period last year, surpassing
a 5.5% increase forecast by analysts. "Better-than-expected economic data from China just erodes
concerns that the global slowdown is not as deep as expected,
therefore causing some profit-taking in gold," said Howie Lee,
economist, OCBC Bank.
Meanwhile, China's economic growth slowed to 6.2% in the
second quarter from a year earlier, the weakest pace in at least
27 years.
"Having said that the overall growth picture still looks
weak. Further tensions around (U.S.-China) trade talks and
geopolitical concerns in the Middle East, the need for gold as a
hedge still remains strong," he added.
"Retail sales and industrial production data that came in at
higher levels suggest that the economy is in better shape and
that means less potential for stimulus from the officials in
China," said Michael McCarthy, chief market strategist, CMC
Markets.
Denting the bullion's appeal, Asian shares advanced on
Monday as encouraging Chinese data suggested the world's
second-biggest economy may be starting to stabilise due to
ramped-up stimulus from Beijing. MKTS/GLOB
Also weighing on gold prices, the dollar index .DXY inched
higher on Monday against a basket of major currencies. USD/
However, dollar index fell for three sessions in a row on
prospects of an interest rate cut by the U.S. Federal Reserve
later this month.
"The next big event for gold is the Federal Open Market
Committee meeting at the end of this month, as expectations
fluctuate between quarter percent cut and half percent cut, we
should see that have an impact on gold prices," McCarthy said.
Meanwhile, hedge funds and money managers cut their bullish
stance in COMEX gold in the week ended July 9, the U.S.
Commodity Futures Trading Commission (CFTC) said in a report on
Friday. On the technical side, spot gold looks neutral in a narrow
range of $1,404 to $1,421 per ounce, and an escape could suggest
a direction, according to Reuters technical analyst Wang Tao.
Among other precious metals, silver XAG= rose 0.4% to
$15.27 per ounce and palladium XPD= climbed 1% to $1,560.47.
Platinum XPT= gained 0.5% to $832 an ounce, after hitting
its highest since July 4 at $838.73.