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PRECIOUS-Gold's gains capped by rebound in stocks, but technicals bullish

Published 26/02/2016, 11:52 am
© Reuters.  PRECIOUS-Gold's gains capped by rebound in stocks, but technicals bullish
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SINGAPORE, Feb 26 (Reuters) - Gold was little changed above $1,230 an ounce on Friday as safe-haven gains were capped by an overnight rebound in global equities and oil prices, although technical signals for prices were bullish.

FUNDAMENTALS

* Spot gold XAU= was steady at $1,235.38 an ounce by 0043 GMT, after posting a small 0.4 percent gain in the previous session.

* Global equity markets got a boost from an upturn in crude oil on Thursday as the market focused on an upcoming meeting of major oil producers that investors hope could stabilize volatile petroleum markets.

* Asian shares rose on Friday following a firmer finish on Wall Street and as investors awaited a meeting of Group of 20 finance leaders that will likely offer words of reassurance, even if little in the way of actual policy stimulus. MKTS/GLOB

* Gold prices are closely tracking moves in the equity markets. Its 16.5-percent rally this year has been fuelled by safe-haven bids as equities tumbled on lower oil prices and fears of an economic slowdown. The metal hit a one-year top of $1,260.60 two weeks ago.

* Bullion is also supported by bullish technical signals.

* Gold has seen a bullish technical formation called the 'golden cross,' where the 50-day moving average goes above the 200-day moving average.

* The shorter term price average is now about $3 above the longer-term average.

* This is the first such occurrence in nearly two years and would be a bullish buy signal for technical traders and momentum-driven investors. An increase in the holdings of bullion-backed exchange-traded funds has also supported the rally, with assets of SPDR Gold Trust GLD rising to the highest since March 2015 on Wednesday.

* For the top stories on metals and other news, click TOP/MTL or GOL

MARKET NEWS

* The yen was broadly softer early on Friday as demand for the safe-haven currency waned after a rebound in oil prices helped spur a rally on Wall Street. USD/

DATA AHEAD (GMT)

0130 China house prices Jan

0745 France consumer spending Jan

0745 France producer prices Jan

1000 Euro zone business climate Feb

1000 Euro zone consumer confidence Feb

1330 U.S. GDP estimate Q4

1330 U.S. Core, PCE PCE prelim Q4

1500 U.S. U Mich sentiment final Feb

PRICES AT 0043 GMT Metal

Last

Change Pct chg

Spot gold

1235.38

1.12

0.09 Spot silver

15.16

0.02

0.13 Spot platinum

925.4

-0.3

-0.03 Spot palladium

482.22

-0.78

-0.16 Comex gold

1236.5

-2.3

-0.19 Comex silver

15.18

0.01

0.07

COMEX gold and silver contracts show the most active months

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