Gold ends flat in Asia trade, seen in $424 to $428 range

Gold was little changed in Asia on Wednesday and was expected to remain within a slim $424 to $428 per ounce range ahead of remarks by Federal Reserve Chairman Alan Greenspan, which should offer fresh leads for the dollar, traders said. Spot gold was quoted at $425.40/425.90 per ounce, against $425.50/426.20 late in New York. The market paused for breath after the metal hit $426.85 on Tuesday, it's highest in nearly three weeks and not far from resistance of $428.
Indeed, dealers expect limited price movements ahead of Greenspan's congressional testimony on the state of the US economy later in the day and on Thursday.
"We are looking at the upside of $428 and I think we should stay above $422 an ounce," said Beth Hsia Wah, a dealer at United Overseas Bank in Singapore, a centre for bullion trading in Southeast Asia.
"It's very quiet over here but premiums remain high." Indonesia's healthy appetite for gold was compensating for slow demand from other Asian consumers after the Lunar New Year holidays, traders said.
That helped support gold bar premiums at 50 US cents an ounce to London spot prices. Fears of inflation amid a prospect of rising domestic fuel prices have encouraged gold purchases in Indonesia, Southeast Asia's largest consumer of the metal, dealers said.
In the currency market, the euro was steady at $1.3019. In other precious metals, spot silver was at $7.22/7.24 an ounce, against $7.32/7.35 late in New York. Platinum was at $856/861, against $850/854.
The precious metal, which has lost nearly three percent of its value since hitting a two-month high of $882 in February, was weighed down by reports of a possible surplus.
Precious metals refiner Johnson Matthey said on Tuesday the world platinum market is moving toward a surplus in 2005, with prices falling despite strong demand.
JM maintained its view on the market in an update to its Platinum 2004 Review, adding that prices should stay in a $760-$880 range into mid-May of 2005 but it also pointed to uncertainty on new mining projects.
Sister metal palladium was at $182/187 an ounce, compared with $180/184 late in New York. In Tokyo, the benchmark December gold futures contract rose three yen per gram to 1,439 yen.
On Hong Kong's Chinese Gold and Silver Exchange, teal gold (37.5 gram ingot) was quoted at HK$3,947, compared with of HK$3,944.