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Gold back in range

before holiday weekend

LONDON: Gold drifted back into a narrow range on Thursday after a half-hearted attempt to break out of the price band in New York, dealers said.

The market has been languishing below $400 per ounce since last week, when it failed to break above that key barrier.

Prices zoomed up to six-year highs above $415 in February on the back of an injection of money from U.S. investment funds, but when the funds cashed in their gains the market retreated.

On Thursday morning, gold fixed at $394.30 per ounce, down 35 cents from Wednesday afternoon.

Spot gold finished higher at $394.95 in Europe on Wednesday and later edged up by another 75 cents in New York, but the market was not able to sustain the level.

"It seemed like some people were trying one last desperate push before the holiday," one dealer said.

Business was very slow in Asia on Thursday, with Hong Kong closed for the Ching Ming festival and the Easter holidays. It will reopen, along with the European markets, next Tuesday.

In Tokyo, gold futures were a touch firmer, but trade was lacklustre.

Many dealers in London said they planned to leave their offices around noon.

Dealers said there had been good demand from jewellery buyers when prices dip below $394, but it tapers off above there.

Spot silver prices were also stuck in a tight range, having lost about four cents overnight, and silver was quoted at midday at $5.53 per ounce. Platinum was 75 cents down at $407.00 per ounce and palladium was off $1.20 at $140.00 per ounce.-Reuter