Gold held in Asia on Thursday near New York levels, taking its cue from a steadier US dollar but trade was thin ahead of the release of US second-quarter gross domestic data later this week. Spot gold was quoted at $424.70/425.20 an ounce barely changed from $424.50/425.20 last quoted in New York.
The yellow metal rose more than $1 an ounce in the US market on Wednesday after the dollar failed to rally on unexpectedly strong US durable goods data.
The euro was flat from New York levels at $1.2069 in Asia. "Another figure will come out on Friday, so we are hoping that the market will find an excuse to break free from the narrow range.
But in general, I don't expect this slow market to move much before the summer is over," said one dealer in Hong Kong. "There's no clear direction at the moment," said the dealer, who expects the market to trade between $422 to $426 this week.
Gold has tracked movements of the dollar against other currencies in recent weeks, which means that investors will likely watch US economic data for direction.
US second-quarter gross domestic product figures dues on Friday are expected to offer clues on how much higher US interest rates may rise.
The Fed has raised them nine times since June 2004.
On Wednesday, data showed that US durable goods orders rose 1.4 percent in June compared with an upwardly revised 6.4 percent rise in May.
Economists had expected a fall of 1 percent in June. Strong US economic data have lifted expectations the Federal Reserve would raise rates to 4 percent by the year-end and perhaps even further in 2006.
Higher rates normally prop up the dollar, but put pressure on gold by making it more expensive for holders of other currencies. In other precious metals, silver was at $7.04/7.07 an ounce, versus $7.01/7.04 in the US market.
Platinum was at $885/890 an ounce, versus $881/884. Palladium was at $188/193 an ounce, compared with $187/190 in New York.
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