US gold futures pulled back on profit taking early on Thursday, after rising for three straight sessions, as dealers eyed softer crude oil prices, while silver dipped from Wednesday's 22-year peak.
"Gold looks a little heavy after failing to advance much yesterday like we did against the weaker oil," said James Quinn, AG Edwards & Sons commodities commentator.
"Oil is expected to open flat to lower in here this morning and I'm inclined to think we might try to test the $552 support level," basis April gold futures, he said.
In the other precious contracts, palladium drifted down from its previous five-week high and platinum pulled back too. By 9:55 am EST, April delivery gold on the COMEX division of the New York Mercantile Exchange fell $1.90, or 0.34 percent, to $552.50 an ounce, trading from $557.60 to $551.20.
Dealers said gold was gyrating at the top end of its medium-term $540-to-$560 trading band. James Turk, founder of GoldMoney.com, said he feels there is no chance gold will fall back below $500 and, due to strength in the metals and US dollar weakness, the silver price should see the $10 mark become a solid support level.
Gold has been lifted in its five-year rally by uncertainty about equities and currencies, interest rates and geopolitics, and prices are seen holding firm on keen interest from speculators in the short-term.
Spot gold traded down at $551.00/551.70, against Wednesday's late quote at $553.50/4.40. Thursday's London morning fix was at $553.25.
May silver fell 6.0 cents or 0.6 percent to $10.29, in a range of $10.3850 to $10.2650.
Spot silver eased to $10.28/10.31 from $10.31/10.34 an ounce previously. Thursday's fix was at $10.2750. Over at NYMEX, April platinum shed $5 to stand at $1,024 an ounce. Spot platinum dipped to $1,023/1,027. June palladium fell $3.30 to $315 an ounce, while spot palladium edged down to $309/313.
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