MANILA: Gold clung to modest overnight gains on Thursday as inflows to the world's top gold-back exchange-traded fund climbed to the highest since September 2014, reflecting optimism bullion can stretch this year's rally.

FUNDAMENTALS

* Spot gold XAU= was little changed at $1,239.40 an ounce by 0027 GMT, after rising 0.7 percent on Wednesday. The metal hit a one-year high of $1,260.60 on Feb. 11 as uncertainty in the global economy whetted investor appetite for safe havens.

* US gold for April delivery GCcv1 was off 0.1 percent at $1,240.40 an ounce.

* While gold faces firm resistance at $1,250-$1,260, HSBC said "the market has built a solid and supportive base above $1,200" and there is enough risk sentiment and uncertainty to support the metal.

* Gold has gained nearly 17 percent this year to be among the top performing commodities.

* Holdings of SPDR Gold Trust (GLD), the world's largest gold-backed exchange-traded fund, rose further to 25.35 million ounces on Wednesday, the most since September 2014. [GOL/ETF]

* San Francisco Federal Reserve President John Williams said he is not worried that the global economic slowdown, stock-market sell-off and the oil price slide since the beginning of the year will knock the US recovery off its tracks or send the economy into recession.

* US private employers added 214,000 jobs in February, above economists' expectations, suggesting solid job growth despite market turmoil and worries about a slowing global economy.

* The data comes ahead of Friday's crucial U.S. nonfarm payrolls, which is forecast to have risen by 190,000 last month after increasing by 151,000 in January, according to a Reuters poll of economists. USNFAR=ECI

* For the top stories on metals and other news, click [TOP/MTL] or [GOL]

MARKET NEWS

* Asian shares were trying to string together three sessions of gains as the upbeat data on U.S. jobs and gains for a range of commodities increased risk appetites globally. [MKTS/GLOB]

* Oil prices ended up for a third straight day on Wednesday as buyers shrugged off record high U.S. crude stockpiles to focus on an OPEC plan to freeze production. [O/R]

DATA AHEAD (GMT)

0145 China Caixin services PMI Feb

0850 France Markit services PMI Feb

0855 Germany Markit services PMI Feb

0900 Euro zone Markit services PMI final Feb

1000 Euro zone Retail sales Jan

1330 US Weekly jobless claims

1500 US ISM non-manufacturing PMI Feb