Gold futures in New York closed at a two-week low on Tuesday on technical selling ahead of the US Federal Reserve interest rate meeting later this week and a half-session on Friday before the US July Fourth holiday.
A steadier US dollar and softer crude oil during the day also took the shine off prices, due to less demand for safe haven assets like gold, but futures held above major support levels as trading was rather light.
Open interest in Comex gold futures jumped 6,104 lots to 308,497 lots as of June 27. The Fed announces its move on interest rates on Thursday.
A Reuters poll found that economists expect it to raise its key lending rates by a quarter point to 3.25 percent. That compares with euro zone rates at a historically low 2 percent.
Market players also will be watching for last-minute moves by speculative forces on that day because it is the end of the second quarter, said traders.
On Friday, US metals futures will trade a half-day ahead of Monday's US Independence Day holiday. Meyers put support at $436.50 and $433.50 with resistance at $440 to $441 Gold showed a tighter link with the euro's moves as the currency fell to $1.2074 against the dollar late in New York, from $1.2161 near gold's close on Monday.
The euro has faltered amid predictions for the US rate gap to widen further over the euro zone. A soft euro dampens dollar-denominated bullion demand from European investors.
Spot gold last was down at $435.80/6.50, versus on Monday's New York close at $439.75/440.50. The afternoon fix in London was at $437.00. Silver hit a five-week low on fund long liquidation. July silver futures shed 14.6 cents to $7.096 an ounce, the weakest close since May 24. The session range was $7.24 to $7.09. July-into-September contract rollover was proceeding modestly before July first notice day on Thursday. September fell 15.0 cents to $7.14.
Spot silver fetched $7.06/09, off from $7.21/24 in New York on Monday.
The London fix was at $7.215. July platinum fell $6.70 to $885.60 an ounce.
October is the next active contract. Spot platinum held at $880/884. September palladium slipped $2.45 to end at $184.05 an ounce. Spot traded to $182/186.