--Comex December gold recently trades up $3.90, or 0.2%, at $1,779.50 a troy ounce
--Asian physical demand slack since prices rose above $1,700, Standard Bank says
--Muted currency moves give gold little direction ahead of ECB meeting, U.S. jobs report
By Matt Day
NEW YORK--Gold futures shuffled between modest gains and losses Wednesday, edging higher amid muted moves in currency markets and mixed signals on physical demand for the precious metal.
The most actively traded contract, for December delivery, recently traded up 0.2%, or $3.90, at $1,779.50 a troy ounce on the Comex division of the New York Mercantile Exchange.
Moves in currency markets were mild Wednesday as traders digested economic data showing slowing growth in China and more signs of a recession in Europe. Some market participants were wary of placing large bets ahead of the European Central Bank's policy meeting Thursday, and Friday's release of monthly U.S. employment data.
That left gold little direction. The metal can move inversely to the U.S. dollar, as investors use dollar-denominated gold to hedge against declines in the currency.
Chinese markets remained closed Wednesday for a week-long public holiday, limiting trading activity in gold and other metals.
"Physical gold demand out of Asia remains weak," Standard Bank analyst Walter de Wet said in a note.
Demand in India especially has fallen since the beginning of September, Mr. de Wet said, coinciding with a rise in gold prices above $1,700 a troy ounce: "We have seen in the past that physical buyers take time to adjust to a higher gold price."
Gold climbed to a 2012 high Monday, nearing $1,800 a troy ounce as a key supporter of the Federal Reserve's new bond-buying program made the case for its extension through next year. The Fed's latest effort to stimulate the U.S. economy has renewed interest in gold, helping prices rise from $1,600 a troy ounce in mid-August.
Some investors use gold and other precious metals as a hedge against the potential inflation and currency weakness that can result from such easy-money policies.
