Gold recoups losses, but firm equities weigh
Gold regained some strength on Thursday as recent losses started to ignite buying interest from jewellers in Asia after the Lunar New Year break, but firmer equities could limit gains.
This week's meeting of the Group of 20 developed and emerging market economies will be in focus for clues about global growth and also their views on currencies, which could set the tone for gold and other precious metals.
Gold had added $1.58 an ounce to $1,643.94 by 0308 GMT, having fallen below $1,650 on Wednesday after data showed disappointingly small growth in U.S. retail sales and the S&P 500 index briefly hit its highest intraday level since November 2007.
"There's a little bit of buying from the jewellery side - it's from Hong Kong. I think you can say it's a scale-down buying," said Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong, adding that premiums for gold bars to spot London prices ranged from $1 to $1.50.
Markets in China remain shut for the Lunar New Year holiday, but Hong Kong resumed trading on Thursday.
A weak Japanese yen and hopes of rising demand from auto makers in China lifted PGMs futures on Tokyo Commodity Exchange (TOCOM), with the most active palladium contract extending gains to its highest since mid-2001.
The yen held near multi-year lows against the dollar and euro, while shares steadied ahead of the G20 meeting, where exchange rates will to be a hot topic, and any dollar strength may weigh on
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