By Arpan Mukherjee Gold was under pressure in Asia Thursday amid a broad slide in regional equity, metal and energy markets after the U.S. Federal Reserve's modest stimulus measures disappointed. Prices are expected to head lower in the near term before entering a consolidation phase. The yellow metal kept testing psychological support at 1,600 U.S. dollars a troy ounce during the session and slipped to an intraday low of $1,597.10/oz before bouncing back. At 0447 GMT, spot gold was at $1,602.60/oz, down $4.20 from its previous close. The precious metal "had been supported by optimism of further quantitative easing and investors suffered as this didn't come to fruition," IG Markets strategist Stan Shamu said in a note. Although the Fed is prepared to take action if necessary, it extended its ongoing Operation Twist in an attempt to keep long-term borrowing costs lower by selling short-term Treasurys and buying long-term bonds. However, the market was expecting stronger measures after a string of weak economic data from the U.S. The extension of Operation Twist is "likely priced in" for gold, but "misplaced expectations of QE gathered too much steam over the past two weeks," Sonny Tahiliani, managing director of New York-based consultancy MacroMoves Capital Advisors, said. "I wouldn't be surprised to see the gold market drift lower until the fear factor kicks in," he added. OCBC Bank analyst Barnabas Gan said gold looks supported at current levels, but downside risks exist should risk-off sentiment persist or deteriorate due to euro-zone debt woes. "In such a scenario, we continue to look for the dollar as a safe haven rather than gold." However, to some investors, gold's allure as a safe-haven asset in the long term hasn't diminished. Investors should continue to buy the metal, Jeffrey Sica, president and chief investment officer of U.S.-based SICA Wealth Management, said, adding that it remains a "flawless trade" as it is likely to benefit in the medium to long term from uncertainty in the global financing markets. Among other precious metals, silver looks "fairly bearish" with a scope to test previous session lows, ANZ analysts said in a note. At 0447 GMT, spot silver was at $27.94/oz, down 18 cents from its previous close. On platinum and palladium, Barclays analysts said current price levels offer "attractive buying opportunities." "But given our expectations for the palladium market to swing into deficit this year, palladium remains our favorite pick of the two." Spot platinum was at $1,449.60/oz, down $4.40, while palladium was at $613.25/oz, down $4.75 from its previous close. Write to Arpan Mukherjee at arpan.mukherjee@wsj.com

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