US gold futures retreated early Friday in holiday-shortened trading, knocked by a stronger dollar as traders focused on the prospect of accelerating US interest rate rises, dealers said. "Gold is a little lower on dollar strength, but volume is very small at this point. I don't think traders are looking at (slightly lower) oil prices, though later that could become a factor," Frank Aburto at F.C. Stone said.
By 10:05 am EST (1505 GMT), gold for February delivery fell $2.10 to $423 an ounce on the New York Mercantile Exchange's COMEX division, dealing between $426.10 and $420.70.
Turnover was estimated at a mild 16,000 lots by 10 am
New York metals will shut early at around noon on Friday and will stay closed on Monday for Martin Luther King Jr. Day.
Gold usually takes its cue from the euro/dollar, with a higher dollar weighing on the metal as it become costlier for non-US investors.
Spot gold reached $422.70/3.20 an ounce, down from Thursday's New York closing level at $424.35/5.10. Friday's afternoon fix in London was at $422.50.
"Scaled-down support should be found from $425 to $418 but I think we will soon test back into the $432-45 price band before heading back toward $455-458," TheBullionDesk.com said in a report.
Some analysts have forecast this week that gold should average around $450 in the next several months, on a stronger euro, improved fabrication demand and speculative buying.
COMEX March silver lost 7.5 cents to $6.67 an ounce, trading $6.775 to $6.58. Spot silver slid to $6.61/64 from its last late quote at $6.71/74. It fixed at $6.63.
NYMEX April platinum fell $5.50 to $856 an ounce. Spot platinum traded to $852/857. March palladium fell $4 to $185 an ounce. Spot was worth $182/187.
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