Gold firmed in Europe late on Tuesday, aided by weaker-than-expected US housing data and oil prices near 10-month highs, traders said. Spot gold was at the day's high of $657.15/657.75 an ounce by 1445 GMT, against $656.45/657.90 late in New York on Monday.
"Buying in gold strengthened after US housing data came out weaker than expected and the euro seems to be holding above $1.3400," said Alexander Zumpfe, trader at German refiner Heraeus.
The euro was at $1.3408 by 1445 GMT, while crude oil prices sat just below $72, slightly easier but not far off a 10-month high hit in the previous session. Losses were limited by a strike call in Nigeria that could further hobble output in the world's eighth biggest crude oil exporter. A firmer dollar makes gold costlier for holders of other currencies and lowers bullion demand. The metal is also seen as a hedge against oil-led inflation.
Gold has struggled to regain $700, a level last seen in May 2006. It rallied to an 11-month high of $693.60 in late April but other attempts to approach $700 met profit-taking. "Although we still see some upside potential for gold...prices will be in need of a new catalyst to revive its challenge towards higher levels," Barclays Capital said in a daily note.
The bank's technical analyst said gold would need to close above a June 4 high of $674 to accelerate an advance. In other precious metals, silver was flat at $13.21/13.25 an ounce, while palladium crept up to $369/373 an ounce from $368/372. Platinum slipped to $1,289/1,293 an ounce from $1,290/1,294 in the US market late on Monday.
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