Gold inches up on weak economic data, but firm dollar caps gains

The US dollar, which traded close to a near two-year peak, kept the metal's gains in check by making it more expensive for holders of other currencies

Gold prices edged up on Thursday as a dip in equities and weak economic data from far and wide raised flags about the pace of global economic growth, while a firm dollar curbed further gains for the metal.

Spot gold rose 0.2 per cent to $1,277.72 per ounce at 0815 GMT. US gold futures were steady at $1,279.60 an ounce.

Asian shares took a hit after data showed German business morale deteriorated in April as trade tensions hurt the industrial engine of Europe's largest economy.

South Korean economy also unexpectedly contracted in the first quarter, fuelling concerns that the global economy is still