Spot gold rose on Thursday, buoyed by a strong technical formation and the potential for a bullish "golden cross" to form, while the futures market pared losses after feeling earlier pressure from the strong equity markets.
Spot gold was up 0.33 percent at $1,232.96 an ounce, heading for a third straight day of gains but remaining below the one-year high of $1,260.60 reached on Feb. 11.
U.S. gold futures most-active April contract settled down 30 cents at $1,238.80 per ounce. The discrepancy in price direction between the bullion markets was due to Wednesday's late-day weakness in the spot market.
"Gold is still holding above that pennant formation. It's muted as a result of strength in equities," said Eli Tesfaye, senior market strategist for brokerage RJO Futures in Chicago, referring to gold futures.