Gold slipped in thin holiday trade on Wednesday, shrugging off a weaker dollar, as crude oil prices fell over worries of deteriorating demand. In light trading ahead of Christmas, spot gold was down at $836.90 an ounce at 1253 GMT versus $838.55 late in New York. "We're seeing some choppy movements with the liquidity so thin," said analyst Suki Copper at Barclays Capital.
"It is more likely to remain rangebound today," she said. Oil fell more than $2 to below $37 a barrel, tracking global equity losses and ahead of US data expected to show an increase in crude stocks. The dollar slipped against a basket of currencies in thin trade as investors braced for US data that may add to the grim outlook for the nation's economy.
Traders awaited US spending and durable goods data, which follow figures on Tuesday showing the US economy contracted 0.5 percent in the third quarter and existing home sales fell by a record amount last week as the recession picked up pace. "Given the early closes conditions are likely to remain very thin today," analyst James Moore at Thebulliondesk.com said.
"However the metal should find further support around $828, although the market is likely to remain vulnerable to pockets of cash generating year-end liquidation over the next few days." Bullion has risen to a two-month high of $881.20 an ounce last week, bringing its gains to nearly 20 percent in December alone.
Comex gold futures for February was 0.05 higher at $838.60 per ounce in after-hours trade after losing $9.10 or 1.07 percent on Tuesday. Spot platinum was at $846.50 from $842 an ounce late on Tuesday while spot palladium was at $171.00 an ounce from $170. Silver recouped some of Tuesday's hefty losses to move higher at $10.28 versus $10.22.
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