LONDON, Dec 22: Gold prices edged up in Europe but was below $500 an ounce in relatively quiet trade on Thursday, with market players avoiding big positions ahead of the year-end, dealers said.

The metal was expected to trade in a narrow range this week, but the outlook remained bullish and gold might try getting closer to last week’s near-25-year high of $540.90 in early 2006, they said.

The market has exhausted its selling for the time being, said Paul Merrick, vice-president of commodities at RBC Capital Markets.

However the trouble is that the market is always vulnerable because of the fact that volumes are fairly low. That means just one or two large sellers can move the market a long way.—Reuters