Gold scarcely budged in Asia on Thursday as the dollar kept gains against other major currencies, while platinum fell on fresh Japanese-led selling, traders said.
Gold was trading at $383.75/384.50, versus $383.70/384.45 last quoted in New York and London's on Wednesday fix of $385.25. Key support was pegged at $380 an ounce. In Tokyo, benchmark April futures fell 12 yen per gram to 1,361 yen.
"The immediate direction for gold is linked to the dollar; higher interest rates will lift the US dollar and put pressure on gold. Gold's 'safe-haven' status has diminished in recent months," said N M Rothschild in a daily report.
"Higher global interest rates and stronger growth has sidelined gold as an investment asset as funds are returning to more traditional investments such as with stocks and fixed interest," it said.
The dollar held on to the previous day's gains but made little further headway as investors got used to the idea that interest rates there were likely to rise gradually. The euro was trading at $1.2005, hardly changed from late US trade.
A rise in US interest rates would make dollar-denominated assets more attractive, which would boost demand for dollars. But a stronger dollar makes gold and other precious more expensive for holders of other currencies.
Fears that fund managers would shift money out of the metals market to dollar-denominated assets on a possible US interest rate rise also put pressure on platinum, which hit a 24-year peak of $942 in April.
Platinum fell to $772/777 from $777/782 last quoted in New York. In Tokyo the benchmark April 2005 platinum on the Tokyo Commodity Exchange (TOCOM) fell 20 yen per gram to 2,637.
Dealers said sentiment in Japan was also dampened by a lack of physical buying recently by China, the world's largest consumer, and worries that China's measures to cool its overheating economy might hurt demand.
Some dealers said platinum prices might hold current levels for a while but did not rule out another test lower to $760 if Japanese speculators decided to sell again. Sister metal palladium was at $221/226 an ounce, up from $220/225 last quoted in New York.
Silver rose to $5.71/5.74 an ounce, compared with $5.64/5.67.
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