Gold clings to small gains on weak U.S. data, softer dollar

Singapore (June 26) - Gold held on to small overnight gains on Thursday to trade near a two-month high, supported by safe-haven bids from weak data on U.S. economic
growth and a softer dollar.
       
 FUNDAMENTALS
 * Spot gold was little changed at $1,319.20 an ounce
by 0008 GMT, after rising 0.1 percent in the previous session.
    * The U.S. economy contracted at a much steeper pace in the
first quarter than previously estimated, turning in one of its
worst-ever non-recession performances, but growth already
appears to have rebounded strongly.
    * Data showed gross domestic product fell at a 2.9 percent
annual rate, the sharpest decline in five years, instead of the
1.0 percent pace it had reported last month.
    * The dollar languished near one-month lows against a basket
of major currencies early on Thursday, having been knocked back
hard after revised U.S. growth figures for the first quarter
came in shockingly weak.
    * China and Singapore are vying to provide feasible gold
price benchmarks in Asia, as calls grow in the top consuming
region for more localized pricing of the precious metal at a
time when the global benchmark is under regulatory scrutiny.
    * Platinum group metals were steady after tens of thousands
of South African platinum miners returned to work on Wednesday
after wage deals ended the longest and most damaging strike in
the country's history.

Source: Reuters