Gold clings to small gains on weak US data, softer dollar

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 US 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% in the previous session.

* The US 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% annual rate, the sharpest decline in five years, instead of the 1.0% 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 US 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.