LONDON, Aug 11: A weakened dollar kept gold prices towards the top end of a week-long trading range in Europe on Thursday, but traders said the market was mostly neutral and could go either way.

Gold peaked at $439.10 last Thursday, its highest in just over five weeks, but has since struggled to get back through that level.

Spot gold was at $437.70/438.50 a troy ounce, barely changed from New York’s late quote on Wednesday of $437.10/437.90.

Dealers said they expected the market to continue in the pattern of the last few days — with prices sitting in narrow ranges during European trade to wait for New York gold futures to open and provide guidance.

Technically it has further room to the upside, but it is really stuck in neutral territory, one trader said. But it is very difficult to pinpoint the next move as there is also room to the downside.

James Moore, analyst with TheBullionDesk.com, said traders would continue to monitor the euro to see if it could get above $1.2460, which if breached could clear the way for a test of $445 in gold.

The euro was at $1.2406, off its earlier peaks around $1.2431.

Investors were squaring positions ahead of US retail sales data for July due later in the session and trade deficit data for June on Friday.

The market was keeping half an eye on the situation in top producer South Africa, where gold miners have been on strike since Sunday.

South Africa’s biggest mining union said on Thursday it had asked its members — which number around 100,000 — to accept the latest wage offer by the Chamber of Mines, and could end its strike later in the day. Analysts said a surge in crude oil prices to a fresh record above $65 had supported gold, along with heightened political tensions in the Middle East.

Platinum attracted buying overnight in Asia, jumping around one per cent to its highest in a week. Dealers said speculative and technical buying in Tokyo platinum futures were behind the move rather than fresh demand from jewellers.

Chinese jewellery manufacturers told Reuters that huge swings in the precious metal’s price have made it tough going. About half of the 100 platinum jewellery manufacturers present in China three years ago have since shut up shop due to volatile and high prices..

China accounts for around half of the total demand for platinum used in jewellery manufacturing.

Spot platinum rose to $907.00/912.00 from New York’s $901.00/904.00. Palladium was unchanged at $185.00/190.00, while silver ticked up to $7.09/7.12 from $7.07/7.10.

—Reuters