Gold see-sawed in a narrow band on Monday, holding most of the previous US session's late gains with the help of a weaker US dollar. Dealers said they saw little beyond the hobbled greenback to drive gold above key chart resistance mark of $655.00 an ounce due to the US Memorial Day holiday that has shut Comex trading on Monday.
Markets in Britain also are closed for a holiday. Spot gold traded as high as $653.70 an ounce before recoiling to fetch $650.80/$651.60. Bullion opened firmer in Sydney at $651.60/$652.40 an ounce versus a late New York price of $650.80.
Gold has traded in around a $30 range over the past week after toppling from a 26-year high of $730 an ounce in mid-May. "With the US out, we're seeing range trading in the sector today," a dealer said.
A weekend report by industry consultants Surbiton Associates that showed world number-two gold producer Australia recorded an 8 percent decline in first-quarter output to 61 tonnes suggested the drop was part of a wider trend of lower output among big producing countries.
"Gold mine production in South Africa, Australia and the United States, the world's three largest gold producers, was down for 2006," Surbiton Managing Director Sandra Close said. "In addition, the US still has problems with its twin deficits, the US dollar still looks vulnerable, there is still instability in the Middle East and Iran still has its nuclear ambitions," Close said.
Australian gold miners found little direction from bullion markets, with Australia's top producer Newcrest Mining Ltd down slightly at A$20.64. Close rival Lahore Gold Ltd was more than 2 percent higher at A$3.04.
Tokyo trade, the dollar slipped to 112.35 yen from around 112.70 yen in late US trade on Friday. The euro was little changed around $1.2740 it eased to 143.20 yen from around 143.55 yen. Spot silver changed hands at $12.80/$12.90 an ounce, up 12 cents on late New York, and spot platinum traded at $1,287/$1,300 an ounce versus $1,292 in New York.
Spot palladium was down $3 to $349/$356 an ounce.
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