LONDON — 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 $835.10 (U.S.) an ounce at 1055 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.
Brent crude oil futures fell more than $1 a barrel on deepening worries that global recession would reduce oil demand.
The U.S. dollar slipped against a basket of currencies in thin trade as investors braced for U.S. data that may add to the grim outlook for the nation's economy.
Traders awaited U.S. spending and durable goods data, which follow figures on Tuesday showing the U.S. economy contracted 0.5 per cent 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 per cent in December alone.
COMEX gold futures for February fell 0.19 per cent to $836.40 per ounce in after-hours trade after losing $9.10 or 1.07 per cent on Tuesday.
Spot platinum was at $849.50 from $842 an ounce late on Tuesday while spot palladium was unchanged at $17o.00 an ounce. Silver recouped some of Tuesday's hefty losses to move higher at $10.33 versus $10.22.
