Spot gold edged down in Asia on Thursday following a modest rise in US trade the previous day after oil prices drifted down from record levels, but the yellow metal was supported as the dollar struggled against the euro.
Spot gold was quoted at $411.00/. 75 per ounce compared with the late US level of $412.65/3.40. Traders said sporadic profit taking emerged after the spot price failed to rise through the previous US levels and as crude oil edged down in Asian deals.
"Slight falls in oil prices are putting pressure on gold, but it's to say the market has turned bearish," said Kaman Gokon, research manager at Okato Shoji Co Ltd.
"Technically, a decisive break above the $414-415 level could trigger active buying," Goon said. Traders stayed bullish on gold as the dollar continued to struggle against the euro.
On Wednesday, stronger-than-expected US second-quarter growth figures briefly lifted the greenback, but it fell short of bouncing back convincingly, currency traders said.
US gross domestic product expanded 3.3 percent in the second quarter, overstepping economists' forecasts for a rise of 3.0 percent and up from the preliminary estimate of 2.8 percent.
The euro was little changed at $1.2323/26. The key crude oil futures extended losses in Asia after falling in New York on Wednesday for the first time in 10 days. Nymex light crude for November delivery was down 8 cents at $49.43 a barrel in ACCESS trading from the US close.
It hit record highs around $50.47 in the week. Silver was $6.63/$6.65 an ounce versus New York's $6.65/$6.68. Platinum rebounded as traders adjusted their oversold positions made on Wednesday after the easing of a labour dispute by the world's largest producers in South Africa.
South Africa's National Union of Mineworkers postponed a wage strike at Angloplat and workers showed up for their shift at second-ranked Implants, alleviating fears of a shortage of the metal.
Traders said they had turned cautious about holding platinum positions too heavily, having seen massive profit taking around $870-$880 the previous day.
Platinum was quoted at $851/$856 an ounce compared with $847/$852 in New York. Palladium rose slightly to $216/$221 an ounce from $215/$220.
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