Gold prices dipped from near a six-month high on Wednesday, and trading volume was light as investors sat on the sidelines on the eve of the European Central Bank meeting. Gold prices stayed within a $9 range a day after testing the $1,700 an ounce level. With just over 100,000 lots changing hands, volume was less than half the 30- and 250-day averages and close to a third of Tuesday's heavy trade.
"The big investors are not committing new money at this stage. Buying on the eve of a big ECB meeting is not wise. To come out and buy today, you're late to the party," said Adam Sarhan, chief executive of Sarhan Capital. Spot gold edged down 0.14 percent to $1,691.85 an ounce by 3.23 p.m. EDT (1923 GMT). The US December gold contract settled 0.11 percent lower at $1,694.
On Tuesday, spot gold rose to $1,698.45, its highest in nearly six months. Spot silver fell 0.34 percent to $32.19 an ounce, easing from a 4-1/2-month high of $32.42 hit in the previous session. Platinum rose to four-month highs just above $1,571 per ounce amid mounting concerns that the violence that has erupted in South Africa, the world's largest producer of the metal used in jewellery and auto catalysts, shows no signs of abating. Palladium was up 0.24 percent at $638.3.