Gold pushed up to around $426 an ounce in thin holiday-affected trade in Asia on Monday but a sttrong US dollar limited gains Spot gold had retreated back to $424.50/425.20 an ounce, little changed from New York's last quoted level of $424.40/425.10 on Thursday, and off a high of $426.20 an ounce. The US market was closed on Friday and reopens on Monday, after Easter. Australia, Hong Kong and London markets are closed for Easter holidays until on Tuesday.
"There's a slight physical demand," said Beh Hsia Wah, a dealer at United Overseas Bank in Singapore.
"Most people are off, so we are pretty much slow here. It looks like $424 is a good support." Premiums for gold bars to London spot price were unchanged at 40 to 50 US cents in Singapore, which is Southeast Asia's biggest bullion trading centre. Gold, used for both jewellery and investment, has dropped nearly 5 percent in value from a fresh high for the year at $446.70 an ounce hit this month, mainly due to profit taking and a firming dollar.
A strong US currency makes dollar-priced gold more expensive for holders in other currencies, reducing its safe-haven appeal. The dollar hit a six-week high against the euro on expectations that US economic data this week, including a US payrolls report, will strengthen the case for interest rates to rise at a faster pace.
The euro fell to as low as $1.2885, its lowest level since February 14, before rebounding to $1.2904. That compared with around $1.2943 late on Friday. "There's a little bit of illiquidity in the market. That's why gold doesn't react much to the dollar," said one bullion dealer in Singapore.
Other precious metals barely moved, waiting for key markets to reopen. Spot platinum was hardly changed at $860/865 an ounce. Sister metal palladium was trading at $192/197 an ounce, against $193/196 an ounce in late US trade.
Silver was at $6.90/6.93, unchanged from New York's levels.
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