Gold edged above $1,200 an ounce on Thursday as equities weakened, but the safe-haven metal retained most of its losses from a three-day decline on robust U.S. economic data and strength in the dollar.
FUNDAMENTALS
* Spot gold had ticked up 0.3 percent to $1,202.65 an ounce by 0035 GMT, after losing 1 percent in the last three sessions.
* The metal fell on Wednesday after data showed U.S. private employers added 212,000 private-sector jobs in February. Separately, the Institute for Supply Management said its services index was 56.9 in February, up slightly from 56.7 in January.
* The data pushed the dollar to a fresh 11-1/2 year high on Wednesday.
* A robust economy decreases the appeal of bullion, often seen as an alternative investment during times of economic and geopolitical uncertainty. A stronger dollar makes gold more expensive for holders of other currencies.
* Investors are now waiting for U.S. nonfarm payrolls data on Friday for more clues about the economy.
* The data is also being eyed to see how it could impact the timing of the Federal Reserve's move to hike interest rates. Higher rates could dent demand for non-interest-bearing assets such as gold.
* On Thursday, traders will be watching the European Central Bank's policy meet. The ECB, which starts its quantitative easing, or bond-buying, programme of more than 1 trillion euros this month, is expected to detail the plan after the meeting.
* The London Bullion Market Association believes the gold industry is ready for wholesale reform, including a tailor-made mechanism to report daily turnover and potential clearing following 2014's shake-up of benchmarks.
MARKET NEWS
* Asian stocks slipped on Thursday after Wall Street continued to pull back from record highs ahead of Friday's closely-watched U.S. jobs data, while the nervous euro languished at an 11-year low prior to the ECB meeting.