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HK gold ends

slightly higher,

low turnover

HONG KONG: Bullion in Hong Kong ended slightly higher at US$397.90/398.40 an ounce on Tuesday against New York's US$397.70/398.10 close on Monday.

Local gold ended HK$2 higher at HK$3,662 a tael.

Trading remained quiet.

Turnover at the local Chinese Gold and Silver Exchange Society has failed to exceed 50,000 taels a day for the past two weeks, the exchange's assistant manager Herbert Tsang said.

This compares with volume of about 100,000 taels a day at the beginning of 1996, he said.

He said international traders were often attracted to the Hong Kong gold market where they could arbitrage between the Hong Kong price and prices in New York and London.

But he said the lack of any wide margin between the three markets was keeping big arbitragers shy.

"There is a lack of interest in gold trading when inflation is not a problem," he said.-Reuter