By Arpan Mukherjee Gold was slightly higher in Asia Tuesday amid cautious trading, with analysts expecting prices to remain confined to a range in the absence of any catalyst. At 0444 GMT, spot gold was at $1,611.30 a troy ounce, up $1.40 from its previous close. "Investors are trying to keep more cash in hand than park in any particular asset," a Hong Kong-based trader said, adding that some investors are also on the sidelines as the near-term outlook remains unclear. The markets are waiting for clearer indications on the policy front from central banks before taking aggressive positions. The annual economic summit at Jackson Hole later this month will to be closely watched for hints on additional monetary stimulus, analysts said. "But market confidence that central banks will act soon is waning," ANZ analysts said in a report. "While we expect gold to trade broadly within a $1,590-$1,630 range, we may see prices test the lower end of that band after failing to break higher, with support initially likely to show up at $1,6000." Hopes of increased liquidity have helped to underpin hold prices as some consider the metal to be a hedge against inflation. For the time being there is support for gold at around the $1,600-level, "and we may see some pressure there," ANZ analysts added. Physical demand continued to subdued, with expectations of lower imports by India, historically a top consumer, which could weigh on prices. India's gold imports will likely fall more than 30% this year amid thin sales, with prices near record levels due to a weak rupee and an expected fall in festive demand in rural regions amid drought fears. "The physical market remains fairly quiet, with gold being bought on dips towards $1,600," Standard Bank analyst Walter de Wet said in a report. Though he expects demand to improve nearer September, a stronger rupee "may dampen demand." "Therefore, we expect the physical market to provide support on price dips rather than push gold through resistance levels." On silver, he said stockpiles remain ample amid weak industrial demand, adding that a push higher will come only if gold moves higher. Spot silver was unchanged at $27.83/oz. Earlier in the session, platinum prices rose 0.8% and touched an intraday high of $1,392/oz, but analysts said the upside remains capped. "We cannot see a real demand catalyst to push platinum and palladium above $1,550/oz and $650/oz, respectively, and like other industrial metals, we believe that upside is capped," Mr. de Wet said. Spot platinum was at $1,385.70/oz, up $4.70, while palladium was at $572.25/oz, up $1.25. Write to Arpan Mukherjee at arpan.mukherjee@wsj.com

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