LONDON, Nov 24: Gold continued to weaken on Monday afternoon in Europe in a currency-related move amid profit-taking induced by approaching holidays, traders said.

Trade was subdued in Asia earlier as Japan was absent due to a national holiday.

The Eidul Fitr holiday over the next few days was seen keeping Middle East and Asian physical markets quiet, while the US market will be shut on Thursday for Thanksgiving Day.

Players will also keep a close eye on the euro/dollar rate, with any break upwards seen propelling gold towards $400 an ounce — touched briefly last week.

“The softer tone is all currency-related again, when the euro fell back through $1.18,” one trader said.

Spot gold was quoted at $391.90/392.65 by 1534 GMT versus New York’s last quoted levels of $395.80/396.60 on Friday.—Reuters