US gold futures seesawed around unchanged levels in a narrow range and little volume for most of Wednesday's session, settling slightly lower as most players bide their time heading into year end, analysts said. COMEX February gold futures finished $1.40 lower, at $1,387.40 an ounce on the COMEX division of the NYMEX.
Range tightened to $1,385.30 to $1,391.70 an ounce. COMEX gold volume has grown lighter as year end approaches, slipping to an estimated 55,367 lots, off Tuesday's thin tally of 89,888 lots. Gold bounced around unchanged levels throughout the session. With most funds and banks out of the market for 2010, gold's range and volume continue to dwindle - traders.
There is little action or depth in the market to push prices too far in either direction - traders. Gold is seen holding within the wider range between $1,360 and $1,400 into early 2011 - analysts. Euro's decline against the dollar ultimately pushed gold down at the close - traders. The euro was down slightly against the dollar, reversing early gains sparked by a report that China was ready to buy significant amounts of Portuguese sovereign debt.
The dollar firmed and gold slipped early when US third-quarter GDP came in a touch higher than previously estimated, but below expectations as a rise in the pace of inventory accumulation was offset by downward revisions to consumer spending. Looking to 2011, gold historically tends to decline or keep within a sideways range during the first quarter of the year - Donald Selkin, chief market strategist at National Securities Corp in New York.
Spot gold was bid at $1,385.35 an ounce by 2:53 EST (1953 GMT), against Tuesday's closing bid at $1,385.30 in New York. COMEX March silver lost 0.90 cent to settle at $29.385 an ounce. Range spanned $29.23 to $29.485 an ounce. COMEX estimated futures volume at a very light 22,417 lots, down from 45,988 on Tuesday. Spot silver eased slightly to $29.27 an ounce in late New York trade, against $29.32 on Tuesday. NYMEX January platinum closed $9 higher at $1,730.90 an ounce. Spot platinum was higher at $1,725.0 an ounce from $1,719.24 per ounce previously. NYMEX March palladium rose $2.10 to end at $755.15 an ounce. Spot palladium edged down to $751.47 an ounce from $751.75 on Tuesday.