Gold prices were steady in Europe on Thursday afternoon, with earlier gains trimmed as currencies moved into a narrow trading band, dealers said. News of an explosion in front of the British consulate in New York failed to bring out fresh safe-haven buying on its own, with dealers citing reaction only via currency moves. New York police said they were investigating the blast in midtown Manhattan that shattered some windows but caused no injuries. Spot gold stood at $428.70/429.50 per troy ounce by 1515 GMT from $428.85/429.60 late in New York on Wednesday.
"The market has sloped down a little bit on the back of the currencies but its very quiet with quite a few Europeans out for public holidays," one dealer said.
"This seems to be a technically driven market. The longs are still very long, but while it looks heavy, one still can't deny its resilience," Peter Hillyard, head of European metal sales at ANZ bank, added.
The euro was trading almost flat against the dollar, having strengthened briefly after the small blast in New York.
Broad market sentiment focused on Friday's release of US jobs data and comments from Asian officials gathering in Istanbul amid speculation China could revalue its currency.
The euro mustered strength against the dollar earlier this week as traders unwound bets that the Federal Reserve could get more aggressive in raising US interest rates this year - a move that would tend to boost the dollar and tarnish the appeal of gold.
Numis Securities said in a research note that some analysts believed Tuesday's US interest rate rise could be the last for a while.
"The Fed's 'measured pace' approach (to monetary policy) is being interpreted as offering potential for a delay to further rate rises as falling US consumer spending takes effect," the note said.
A weaker US currency makes dollar-priced gold cheaper for non-US investors.
On the investment front, Gold Bullion Securities managing director Simon Village said European investors would soon get access to securities backed by gold bullion bars with a listing on the pan-European exchange Euronext by the end of 2005.
Silver gains were trimmed, leaving spot metal virtually unchanged at $6.98/7.01 from $6.97/7.00 late in New York on Wednesday.
Platinum rose slightly to $873.00/877.00 from $872.00/876.00 previously, while palladium stood at $193.00/197.00 from $192.00/195.00.
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