In Mcx Gold ticked up on Thursday after Asian equities mostly extended falls on global growth concerns, but the metal stayed below a 12-week high as a sell-off in commodities took a toll. Spot gold rose 0.1 percent to $1,230.86 an ounce by 0045 GMT. The metal rose to a high of $1,244 on Wednesday, its highest since Oct. 23, before paring gains to close flat. Gold was sold off along with copper, which slid to a 5-1/2-year low on Wednesday after the World Bank cut its global growth forecast.
Oil prices at near six-year lows also did not help gold, though they did rebound on Wednesday in their biggest surge in two-and-a-half years as traders turned away from the bearish pressures of a worldwide glut to cover themselves on expiring options. The bearish mood towards commodities failed to offset weak U.S. retail sales data that would have typically boosted safe-haven bids for the metal.
The dollar nursed losses early on Thursday, having retreated across the board after a surprisingly big fall in U.S. retail sales pulled U.S. yields sharply lower. Gold is facing a test of strength after an early January rally lifted it back towards a band of resistance above $1,250, a successful break of which could indicate it has bottomed out at its 2014 low. Struggling gold miners are turning increasingly to alternative sources of finance for funds as banks and equity investors shy away.