SINGAPORE

Gold steadied below $1,590 an ounce on Thursday after slipping in the previous session when upbeat US retail sales strengthened the outlook for the world's top economy and dampened bullion's safe-haven appeal. Indications that the global economy, led by recent positive data from the United States, is on a better footing this year has driven investors away from gold, with spot prices down 5 per cent this year. Spot gold was little changed at $1,587.06 an ounce by 0723 GMT. US gold was off 0.1 per cent at $1,586.30. "We already initiated a sell gold recommendation last December," said Henry Liu, head of commodity research at Mirae Asset Securities in Hong Kong.

The US dollar hovered near seven-month highs against a basket of currencies after bullish US retail sales data fanned hopes the economy can cope with the tax hikes and spending cuts that kicked in this year. US retail sales expanded at their fastest pace in five months in February, the latest sign of momentum for an economy facing headwinds from higher taxes and pricier gasoline. But output at factories in the eurozone fell more than expected at the start of 2013 and production in France and Germany slipped in the latest sign the bloc is struggling to emerge from recession. Reflecting a lack of conviction in the gold market, holdings of the largest gold-backed exchange-traded-fund, New York's SPDR Gold Trust were little changed on Tuesday from Monday.