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gold, silver subdued by

August option expiry

LONDON: Gold and silver began steadily on Tuesday as markets focused on the expiry of August options later in the day, which dealers said would limit price movements.

Gold was fixed at $383.25 an ounce, little changed from its close in London on Friday at $383.05. U.S. markets, which were open on Monday, ended barely changed amid small volume.

"There's absolutely no story on gold," one dealer said, adding that the option expiry on Tuesday with strikes at $380 and $385 would also help to keep gold trapped in a tight range.

Silver began a couple of cents weaker at 559 cents an ounce but there were few early signs of a return of the volatility seen last week.

Dealers said they expected prices to consolidate near 560 cents but that an eventual upward move was still possible.

However, in the meantime, an option strike price at 550 cents may cause the market to gravitate lower, although dealers expected any price dip to be well-bought.

Some dealers noted light fund selling of silver in New York on Monday, when London markets were closed for a Bank Holiday, and said this had tempered some of the bullish tone.

Platinum was firm early, reaching the top part of its recent range to trade at $434.75 an ounce by mid-morning Tuesday.

As a background factor, a threatened strike at major South African producer Impala should ensure that prices remain buoyant in the near term.

"Talks are still at the conciliation stage, and therefore any strike before the closing of hearings on September 4 would be illegal," commodity brokerage GNI said.

Palladium was quiet and quoted at $148/$149 an ounce.-Reuter