Gold pushed higher in Europe during Tuesday afternoon trading, with downside resilience encouraging a reversal of the day's trend and technically-based buying, traders said. Prices pushed away from earlier lows near $440.00, erasing earlier losses, to settle into the plus column, aided by steadiness in New York futures.
"We are in a $440.00 to $450.00 range, and as long as $440.00 is supported it is bullish for the price," one trader said.
Initially, further profit-taking, coupled with a firmer dollar, put prices under pressure, although the correction of some two percent since scoring an eight-month high last Friday, was expected given the market's rapid ascent.
By 1501 GMT, spot gold was at $443.10/443.90 a troy ounce, up from New York's late quoted $441.70/442.50 an ounce on Monday.
The market shrugged off latest US financial data, with the July CPI rising 0.5 percent, against expectations of a median 0.4 percent rise, compared with an unchanged reading in June.
Analyst James Moore of TheBullionDesk.com said that with bullion in holiday trading mode traders will continue to keep a close eye on the currencies as well as the oil market.
"Further price fluctuation in either will almost certainly overflow, creating a similar reaction in the precious complex. For now support in gold should be found around $438-40 with gold's upside target still a breach of the $450 level," Moore added.
Silver, albeit steadier, was sluggish compared with gold.
"It struggles around the $7.00 level," the trader said.
Spot was at $7.00/7.03 from the previous $6.94/6.97.
Analysts said silver's recent performance was disappointing as it had failed to make much headway despite buoyant gold prices and the rampant copper market.
Alan Williamson of HSBC Bank said in his report that price charts indicated silver was trading at the bottom of a price pattern dating back to the start of the year.
"As such, silver has become increasingly vulnerable to a sharp move to the downside, if indeed gold does see any aggressive long liquidation," he said.
Elsewhere, platinum looked vulnerable, due to a hefty net long speculative position, which makes the market susceptible to profit-taking.
Spot touched its lowest in just over two weeks at $888 an ounce and was last at $890.00/894.00, down from New York's $903.00/908.00.
Palladium held unchanged at $183.00/186.00.