Tuesday, July 26, 2016

Gold market surplus shrinks as fund inflows offset weak Asian buying -GFMS

* Gold ETF inflows hit highest half-year on record in H1

* GFMS lifts 2016 gold price forecast to $1,279/oz

* Physical gold demand slides to 7-year low in Q2

By Jan Harvey

LONDON, July 26 (Reuters) - A surge in Western gold

investment helped offset sliding Asian demand in the second

quarter, GFMS analysts at Thomson Reuters said on Tuesday, as

they hiked their gold price forecast for the year in response to

jitters over the economic outlook.

In the Q2 update of its Gold Sur

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