COMEX gold slipped Thursday morning in thin trade, as dealers said the market was digesting tame US economic data and also keeping an eye on volatile crude oil prices and the dollar.
"Gold has been following oil as of late because it has moved substantially in the last few days due to the Hurricane in the Gulf, but otherwise it's been very quiet," Frank Aburto at F.C. Stone said.
By 10:22 a.m. EDT (1422 GMT), December gold was down $2.10 at $404.70 an ounce, trading $407.80 to $403.80.
Gold extended losses at midmorning after the euro moved to the bottom of a $1.2120 to 1.2180 range, but the precious metal, although weaker, still held within its broad $400 to $410 trading band.
"Over the last month or so, gold was keeping pace with the dollar, but since the hurricane season started, it has paid more attention to the oil," Aburto said.
Dealers said the pace of trading in financial markets was slow on Thursday with many participants off for the Jewish new year holiday.
Spot gold sank to $402.95/3.70, from Wednesday's closing level of $404.25/5.00. London's Thursday afternoon fix was $403.40.
Floor traders said gold appeared to have decoupled from euro/dollar moves somewhat. "I think there is a lot of buying interest in the market, taking it away from its normal focus of dollar movement," one said at Thursday's open.
"Yesterday, the euro was getting lifted and the dollar was crushed and gold did nothing but hold all day long," he added.
COMEX December silver was flat at $6.30 an ounce, in a $6.26 to $6.355 range. Spot silver changed hands at $6.25/6.28, from $6.24/6.27 previously. Thursday's fix was $6.2675.
October platinum lost $8.70 to $842 an ounce. Spot platinum was at $837.00/842.00.
December palladium eased 35 cents to $210.90 an ounce. Spot palladium fetched $206.00/211.00.