LONDON, Nov 27: Gold was little changed in Europe on Thursday as the effects of a weaker dollar were counteracted by a fall in the oil price, with trading muted by the onset of the Thanksgiving Day holiday in the United States.

Bullion prices were unaffected by a spate of deadly attacks in Mumbai, where at least 101 people have been killed and many more remain trapped by gunmen, despite gold’s reputation as a haven from geopolitical risk.

Spot gold was quoted at $812.60/814.60 an ounce little changed from $811.75 an ounce late in New York on Wednesday.

We have to move out of the $800-830 range to get an idea of where the next move will be, Deutsche Bank trader Michael Blumenroth said.

That will depend on the currency markets and other markets. We are unlikely to see much flow or much interest because of Thanksgiving today, he added.

The dollar weakened against the euro on Thursday, rolling back some of the previous session’s gains, as a spate of worse-than-expected US economic reports renewed fears over the prospect of a deepening global recession.

A softer dollar tends to benefit gold, which is often bought as a currency hedge.

However, weakness in gold’s other main external driver, crude oil, is weighing on prices. Oil fell towards $53 a barrel after US stocks and oil demand data released on Wednesday increased worries over falling consumption.

However, despite this threat, we believe crude will still head down into year-end, he added. Precious metals should expect little support from crude oil.

Investor demand for bullion-backed exchange-traded funds remains firm, with the world’s largest gold ETF, the SPDR Gold Trust, reporting an inflow of just over 3 tons or half a per cent on Nov 26.

Spot platinum inched up to $856/876 an ounce from $853.50 in New York late on Wednesday as the weaker dollar lent support, while palladium firmed to $190.50/195.50 an ounce from $189.50.

Both metals are suffering from a perception that demand from auto manufacturers is likely to remain lacklustre.

Among other precious metals, spot silver was at $10.28/10.36 an ounce against $10.29.—Reuters