SINGAPORE: Gold slipped on Thursday as strong export data from China and positive comments on the US economy from Federal Reserve Chairman Ben Bernanke whetted investors' risk appetite and prompted a rise in equity markets.
Asian stocks rose, but lingering fears the euro zone's sovereign debt crisis may be spreading capped gains.
Spot gold was at $1,227.60 an ounce by 0604 GMT, down $2.75 from New York's notional close on Wednesday, when it slipped after Bernanke said bullion was sending a different signal in response to inflation.
Gold struck a record at $1,251.20 on Tuesday after investors ditched the euro because of the debt crisis in Europe and uncertainties over the future of US interest rates.
"Gold is consolidating before testing higher again. The main driver is still the equity markets," said a dealer in Hong Kong.
"But sentiment is still bullish because of gold's unique safe-haven status."
US gold futures for August delivery were barely changed at $1,230.7 an ounce after falling more than 1 per cent on Wednesday, partly due to Bernanke's comments.
Bernanke said on Wednesday the US economic recovery was on a solid footing but cautioned it could be years before the jobs lost during the deep recession of 2008-2009 are restored.
Thursday's China data also contributed to raising hopes for a global economic recovery. China's exports rose 48.5 per cent in May from a year, much more than initially expected and in line with the number leaked the previous day.
For more stories on the Chinese economy, click "The good data should be good for risk taking. It should be positive on stocks and risk trades. If people are taking more risks, naturally they will come out of gold and go into stocks," said Wong Eng Soon, investment analyst at Phillip Futures in Singapore.
"On an intraday basis, there seems to be more downside risk right now."
The euro extended gains versus the dollar on Thursday, while the Australian dollar rose further on upbeat Australian employment data and China's strong trade figures. [USD/]
Oil reversed losses on Thursday, rebounding towards $75, after data showing Chinese overall exports surged in May outweighed weaker demand readings in top consumer the United States.
