Gold steadies in London

Gold steadied after trading in a wide range on Wednesday on light profit-taking, and analysts said the metal might drift towards $600 an ounce before resuming an upward path. Spot gold moved between $623.00 and $631.00 an ounce, and was at $624.20/624.95 by 1606 GMT. The metal was quoted at $624.30/625.30 in New York late on Tuesday.
"Gold is meeting resistance ahead of the $630 level and looking for direction from the dollar and oil. At the moment, we are just consolidating and waiting for the next push higher," said James Moore, precious metals analyst at TheBullionDesk.com.
The dollar pared earlier losses and moved into positive territory against major currencies as market focus shifted from the Democrats' US election win back to interest rates and economic fundamentals.
As expected, the Democrats won control of the US House of Representatives for the first time in 12 years and as of Wednesday morning still had a shot at taking the Senate. Gold often moves in the opposite direction of the dollar.
"The market wants gold to go up so they (investors) are looking for any bullish news. But there is more chance of the market going down to $600," said Peter Hillyard, head of metals sales at ANZ Investment Bank. He said the market had to correct before rising again.
Dealers said gold might also track oil prices, which crept above $59 a barrel as Gulf Opec ministers meeting in Abu Dhabi pledged to push through a supply cut agreed last month and said a further reduction might follow.
Dealers said gold might trade in a broad range this week, with selling pressure likely to emerge at higher levels. Physical dealers noted selling from investors after the price rallied to a two-month high around $629 this week.
"My buyers disappeared. There's some selling around. I guess people who have bought quite a lot before the festive season need some cash now," a dealer in Singapore said.
UBS Investment Bank said in a daily report that interest in gold exchange traded funds had picked up in recent weeks. In other precious metals, platinum fell to $1,162/1,167 an ounce from $1,187/1,192 in New York, while palladium slipped to $326/331 from $330/336 an ounce. Silver was up at $12.63/12.69 an ounce, versus $12.56/12.63 in the US market.