By Arpan Mukherjee Gold was steady while trading in a narrow range in Asia Friday following a sharp selloff overnight, and further downside was likely for at least the short term, analysts and traders said. At 0432 GMT, spot gold was at $1,666.80 a troy ounce, up $1.60 from its previous close. Gold slumped overnight, falling 2.6%, as investors dumped a range of commodities after disappointing Chinese and German manufacturing data painted an increasingly bleak picture of the global economy. Gold prices could move slightly lower in the near term due to a firmer U.S. dollar, said Dhiren Sarin, chief technical strategist for Asia Pacific at Barclays. "In the short term, I think we could [see gold] drag lower a bit more," he said, adding that a close below $1,520/oz--which would be the lowest level since July 2011--would indicate that a deeper decline is underway. Market participants were disappointed by the U.S. Federal Reserve's decision not to announce more aggressive stimulus measures Wednesday, which effectively quashed hopes of gold demand increasing as a hedge against inflation, which often happens when more money is pumped into the financial system. "There is likely to be more liquidation in the short term," a Hong Kong-based trader said. Gold prices are likely to hit $1,475/oz by the end of the year, Credit Agricole analysts said in a note, although the possibility of over further asset purchases by the U.S. Federal Reserve and elevated risk aversion mean the decline may be gradual. "Gold is clearly losing its luster, as reflected by weakening speculative demand," they said. Silver, which Thursday tumbled to a 16-month low, could slip further to $26.04/oz, but may find support from bargain hunting, ANZ analysts said in a note. At 0432 GMT, spot silver was at $26.99/oz, up 11 cents from its previous close. In the platinum and palladium markets, recycling of spent auto-catalysts is likely to become an "increasingly important factor" given the difficult mining environment, Barclays analyst Suki Cooper said in a note. "High PGM [platinum group of metal] prices have resulted in an improved collection process for spent auto-catalysts with retrieval of PGMs generally being very efficient, with less than 5% lost in the process," she said. Platinum auto scrap is likely to rise 12% this year, and supplies are likely to rise to near 8 million ounces over the next five years, comprising 17% of market supply, she said. Palladium supplies from scrap are likely to grow 14% this year, totaling nearly 10 million ounces over the next five years and 20% of overall supply. Spot platinum was at $1,426.50/oz, down $8.50 and palladium was at $604.01/oz, down $2.99 from its previous close. Clementine Wallop in Singapore contributed to this article. Write to Arpan Mukherjee at arpan.mukherjee@wsj.com "PRECIOUS METALS: Gold Steady in Asia After Selloff; Further Downside Expected," at 0513 GMT misstated the price of spot gold as of 0432 GMT in the second paragraph. The price was 1,566.80 a troy ounce, not $1,666.80.

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