SINGAPORE, Feb 25 (Reuters) - Gold fell early on Thursday as
investors cautiously watched volatile stock and oil markets for
cues, but stayed above $1,200 an ounce, drawing some support
from flows into bullion funds.
FUNDAMENTALS
* Spot gold XAU= eased 0.2 percent to $1,226.40 an ounce
by 0043 GMT.
* On Wednesday, gold had risen as much as 2 percent to
$1,252.91 as lower oil prices dragged down stocks. But the metal
gave up most of its gains to close up 0.2 percent higher as
crude turned higher, lifting stocks, after data showed U.S.
gasoline demand spiked.
* Other safe-haven assets such as Treasuries also reversed
course after the bounce in crude.
* A gauge of equities across the globe closed lower on
lingering concern about economic growth. Asian shares got off to
a shaky start on Thursday in the face of a fragile recovery in
volatile crude oil. MKTS/GLOB
* Gold's 16 percent rally this year has been fuelled by
safe-haven bids as global equities tumbled. The metal hit a
one-year top of $1,260.60 two weeks ago.
* An increase in money flowing into bullion-backed exchange
traded funds (ETF) has also supported the rally.
* Inflows into SPDR Gold Trust GLD , the top gold ETF,
since the beginning of the year have already surpassed outflows
for the whole of 2015. The increase in assets HLDSPDRGT=XAU so
far are also the highest since 2010.
* On Wednesday, holdings of the fund rose again to 760.32
tonnes, its highest since March 2015.
* Gold is also finding support from increasing expectations
that the Federal Reserve will not further raise U.S. interest
rates this year after hiking rates for the first time in nearly
a decade in December.
* Dallas Fed President Robert Kaplan said on Wednesday that
his more downbeat assessment of the central bank's path of rate
hikes will be reflected at the next policy meeting in March.
* Kaplan is among a growing number of Fed officials who have
said the U.S. central bank may have to halt further interest
rate hikes amid tightening financial conditions and slow
progress toward the Fed reaching its 2-percent inflation target.
* For the top stories on metals and other news, click
TOP/MTL or GOL
DATA AHEAD (GMT)
0700 Germany GfK consumer sentiment Mar
0930 Britain GDP 2nd release Q4
1000 Euro zone Inflation final Jan
1330 U.S. Durable goods orders Jan
1330 U.S. Weekly jobless claims
1400 U.S. Monthly home price index Dec
PRICES AT 0043 GMT
Metal Last Change Pct chg
Spot gold 1226.4 -2.56 -0.21
Spot silver 15.219 -0.025 -0.16
Spot platinum 937.7 -0.3 -0.03
Spot palladium 485.5 0.5 0.1
Comex gold 1227.4 -11.7 -0.94
Comex silver 15.23 -0.067 -0.44
COMEX gold and silver contracts show the
most active months