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Gold little changed in Europe

LONDON: The gold price ended barely changed on Tuesday after a brief rally sparked in New York failed when speculators sold to take their profits.

It closed at $384.50 per ounce, just 15 cents, above Monday's closing price.

Some dealers said the potential of lower German interest rates after the Bundesbank council meeting on Thursday was mildly positive for precious metals and said light professional buying might lift gold prices above $385 in the short term.

But gold's price charts suggested that gains would only be temporary and that a rally above $385 would soon be reversed.

"I am viewing current strength as purely corrective," said Karen Jones, technical analyst at Credit Suisse in London. "I am looking for failure in this area."

Dealers also noted the prospect of further producer selling activity above the market and said a break up through $385 could produce a fresh flurry of sell orders.

The silver price was up only a cent at $5.25 an ounce from its close on Monday but dealers said the nearby availability of metal had tightened considerably.

Some said this may be the result of a play by a speculative investment fund involving the New York futures market and could produce a price jump over the next few days.

Others, however, dismissed this and said it was a technical supply aberration that would soon correct itself.

The platinum price remained under pressure at $422 an ounce down 80 cents and business was described as only routine. Palladium too was steady, hovering just above the key $150 level.-Reuter