20000113

Gold quiet in Europe, locked in range

LONDON: Gold bullion prices hardly moved on Wednesday afternoon in Europe, matching the trend in other precious metals.

Gold was fixed at $282.25 an ounce, unchanged from both the morning fix and Tuesday afternoon's fixing.

Traders said the trend typified a market on hold ahead upcoming U.S. economic data, the Martin Luther King day holiday on Monday and the next UK central bank gold sale.

"It is just very, very quiet. We are handling very little this week," one trader said.

The spot price fluctuated narrowly either side of $282.00, having settled back in early trade on light liquidation prompted by a failure overhead.

The market was likely to hold in a narrow $279.50/$283.50 range in the next few days having tested both ends recently, with U.S. CPI data scheduled at the end of the week and a UK auction sale on January 25.

"The market has been trading either side of $283 overnight in Asia and still looks likely to stay within our trading range of $279/$284," broker Standard Bank of London said.

Spot gold was indicated at $281.70/$282.20, down from the New York close of $283.00/$283.75.

Palladium remained stuck just below $450.00 an ounce, and was fixed at $448.00 on Wednesday afternoon, against an overnight close of $448.00/$453.00.

"Based on the fact that demand has outstripped supply for the past three years palladium looks like it could get to $470 before reaching a plateau and drifting back," another trader said.

Doubts over Russia's ability to export needed metal and strong demand prospects underpinned the market. Ross Norman of Precious Metals Research said.

Platinum edged up is slow conditions, but the move was minimal, with spot quoted at $419.00/$423.00, up around $1.00.

Silver was motionless, and appears to be held by the likelihood of solid buying under $5.13 and overhead sales above $5.17. Uncertainty over China's intentions regarding its metal reserves was also leaving the market bereft of direction.

On Tuesday a central bank official said reports that it would sell were "mostly untrue".

The downside was underpinned by chart support at $5.10/$5.00 and perceived physical and industrial demand, Standard Bank said.

Spot silver was quoted at $5.13/$5.16, against a previous $5.15/$5.17.-Reuters