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