Gold futures in New York slipped and ended lower on Thursday, pressured by speculative liquidation and trader positioning before a holiday weekend.
Gold was gyrating below the 25-year peak hit on Tuesday above $608 an ounce, but the price remained relatively steady on a lack of aggressive selling before the long Easter weekend, amid worries over costly crude oil and US-Iran tensions.
"We saw guys trying to get out, square their positions... but I don't think you'd want to be short this market before the weekend," said a dealer at a precious metals trading desk in New York.
New York metals futures markets will shut on Good Friday and reopen on Monday. London precious metals will be closed on Friday and Monday.
June delivery gold on the New York Mercantile Exchange's COMEX division settled at $600.10 an ounce, down $1.20 on the day, after trading in a $603-$594 range.
On Tuesday, June gold surged as high as $608.40 - a peak for futures prices since January 1981, extending its sizzling rally of the past five years.
Market sources expected gold's bull move to continue, fuelled by robust investment demand and safe haven buying sparked by doubts about the global economy and worries over Middle East tensions.
"While consolidation, and even a correction, is entirely possible at any time, we expect investors to use any weakness to add to positions," said John Reade, an analyst with UBS.
UBS held its short-term targets for gold and silver at $610 an ounce and $14 an ounce, respectively, within one month, and at $630 and $16 within three months.
A survey by GFMS Ltd on Wednesday predicted that gold could rise to equal its record peak of $850, set in 1980, over the next 18 to 24 months on strong investment demand.
On Thursday, Iran said it would ignore renewed international calls to halt uranium enrichment, casting a shadow over Thursday's visit for nuclear talks by the head of the UN atomic watchdog.
The United States and other Western nations accuse Iran, the world's No 4 oil producer, of using its civilian nuclear program as cover to build weapons, a charge Iran denies.
The rise in crude oil to within reach of last year's record above $70 per barrel helped limit the decline in gold, which some investors see as a classic hedge against inflation.
The dollar was steady after a report showed solid US retail sales in March.
Estimated COMEX gold volume was 50,000 lots just before the close, versus Wednesday's tally of 50,771.
Spot gold edged to $596.10/596.90 an ounce, compared with $597.50/8.30 Wednesday in New York. London's afternoon fix by bullion dealers on Thursday reached $593.
COMEX May silver rallied 19.2 cents to end at $12.8550 an ounce, dealing from $12.51 to $12.90.
Margins increased for COMEX silver and copper futures contracts, effective with the close on Thursday.
"We do not read much into this change as it is a reflection of the increase in the silver price, and probably higher volatility, following the sharp moves of the past few weeks," said Reade of UBS. "It should also have a minimal impact on silver traders."On Tuesday, May futures and silver bullion both jumped to new 23-year highs, at $13.01, on hopes of an imminent launch of the first silver exchange-traded fund.
Spot silver changed hands at $12.77/12.80 an ounce against $12.82/85 previously. Thursday's fix reached $12.65.
NYMEX July platinum fell $11.80 to $1,089.20 an ounce. It set a record on Tuesday at $1,111. Spot platinum last fetched $1,075/1,080.
June palladium inched to $349.50 an ounce, off 45 cents. It rallied on Tuesday to $364.10 - a high not seen since September 2002. Spot palladium edged to $344/349.
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