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London gold edges down

LONDON: Gold and silver drifted lower on Thursday ahead of the long Easter weekend.

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 afternoon, gold fixed at $393.75, down 55 cents from the morning, and closed in Europe at the same level.

Spot prices edged lower shortly after the opening of New York's Comex futures market, and found some support below $394.00, dealers said.

"Physical buying has been coming in around $394 and just below," one 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.

Comex, however, will be open on Monday.

One dealer thought New York might try a play on Monday in thin market conditions. "Monday will be the best day for it since everyone else is closed," he said.

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