* Gold sees small gain above $1,230/oz
* Prices at bullish 'golden cross' technical signal
* Platinum, palladium extend losses
By A. Ananthalakshmi
SINGAPORE, Feb 26 Gold edged higher on Friday
despite a rebound in stocks, underscoring support for the
safe-haven asset from bullish technicals and money flows into
exchange traded funds.
Asian shares rose following a firmer finish on Wall Street
and as investors awaited a meeting of the Group of 20 finance
leaders that will likely offer reassuring words, but little in
the way of actual policy stimulus.
Spot gold gained 0.3 percent to $1,237.30 an ounce by
Bullion was up only modestly for the week, that would mark
its fifth weekly gain in six.
Gold prices are inversely tracking moves in the equity
markets. Their 16.6-percent rally this year has been fuelled by
safe-haven bids as equities tumbled on lower oil prices and
fears of an economic slowdown. The metal hit a one-year top of
$1,260.60 two weeks ago.
"The general economic situation is giving support to the
gold market. I won't be surprised if we make new highs," said a
bullion trader in Hong Kong.
"There does look to be good money going into ETFs, and their
correlation with the price is really strong."
Assets of SPDR Gold Trust, the top bullion ETF, rose
to their highest since March 2015 on Wednesday.
Inflows into the fund since the beginning of the year have
already surpassed outflows for the whole of 2015. The increase
in assets this year is the highest since 2010.
Bullion is also supported by strong technicals.
Gold prices have developed a bullish technical formation
called the 'golden cross,' where the 50-day moving average goes
above the 200-day moving average.
The shorter term price average is now about $3 above the
This is the first such occurrence in nearly two years and
would be a bullish buy signal for technical traders and
Among other precious metals, platinum dropped for a
third session to trade near a two-week low of $913 an ounce
reached on Thursday.
Palladium was near a six-week low reached in the
previous session, trading down 0.5 percent at $480.75 an ounce.
Unlike gold and silver that benefit from safe-haven bids on
slowing economic growth, the platinum group metals have declined
as they are largely used for industrial purposes.
(Reporting by A. Ananthalakshmi; Additional reporting by Manolo
Serapio Jr in Manila; Editing by Christian Schmollinger and