Gold futures in New York pulled back early on Tuesday on dealer selling sparked by a firm dollar, but uncertainty over Iran's atomic ambitions and high oil prices helped support the safe-haven metal.
December delivery gold retreated $3.20 to stand at $632 an ounce on the New York Mercantile Exchange's COMEX division, dealing from $639.20 to $631.20.
Estimated volume at 9 am (1300 GMT) was a paltry 4,000 contracts.
"We are not really reacting that much to the stronger dollar, because the market is still unsure about the Iranian response," said Leonard Kaplan, president of Prospector Asset Management. Iran on Tuesday handed over its reply to an incentives package by world powers aimed at allaying Western fears that Tehran seeks to build nuclear bombs. Analysts pegged COMEX most-active December gold futures in a range between $625 and $650 for the near term.
Spot gold eased to $622.50/623.25 an ounce, from Monday's late New York quote at $625.60/6.40. Tuesday's afternoon fix in London reached $622.75. "Physical and psychological buying ahead of $600 will limit gold's downside risk, although (bullion) should hold the $600-655 area until the market moves out of the summer holiday season and gets back to full strength," James Moore, an analyst with TheBullionDesk, said in a note.
Comments from two US Federal Reserve presidents on Tuesday and the chairman on Friday also could be key for financial markets this week, analysts said. Separately, a report on the European Central Bank's foreign exchange and gold assets due Tuesday also could shed light on central bank gold sales within an existing agreement.
An estimated 338 tonnes has been sold in the year since last September, leaving up to 162 tonnes to be sold before September 26. COMEX September silver fell 17.5 cents to $12.17 an ounce, in a range of $12.03-12.4350. Spot silver was at $12.11/12.21, off from $12.29/39. It fixed at $12.20. NYMEX October platinum came off by $3.10 to $1,239 an ounce. Spot platinum was quoted at $1,226/1,231. September palladium tumbled $6.70 to $338.50 an ounce. Spot palladium hit $336/341.
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