By Allen Sykora 
   Of DOW JONES NEWSWIRES 
 

Gold futures finished nearly steady Monday as traders balanced a stronger dollar and weaker crude oil, both bearish factors, against expectations for further investment demand in other currencies and a supportive report showing central-bank gold sales remain minimal.

June gold, the contract month with the most open positions, ticked up 30 cents, or 0.03%, to $1,154 per ounce on the Comex division of the New York Mercantile Exchange. Nearby April gold inched up 40 cents, or 0.03%, to $1,153.50.

Charles Nedoss, senior market strategist with Olympus Futures, described gold as "running in place all day" in quiet trading with no dominant catalysts.

The metal's upside was limited by the ongoing concerns about Greece's debt, which supported the U.S. dollar, said Tom Pawlicki, analyst with MF Global. A muscular greenback removes the need to buy the metal as a hedge against a weaker U.S. currency.

Also, gold's upside was limited by a pullback in crude oil, which often leads investment flows in and out of other commodities, Nedoss said. Crude was hurt by ideas that recently stronger economic data could push the Federal Reserve toward eventually upping interest rates, energy analysts said.

Yet, at the same time, a certain amount of investment demand continues to make its away into gold, others said. Ongoing concerns about European sovereign debt are still attracting some safe-haven flows, particularly in currencies other than the dollar, said Bob Haberkorn, senior market strategist with Lind-Waldock.

"It's very encouraging that gold is trading as strong as it is with the dollar trading as strong as it is," Haberkorn said.

Analysts said a report from the World Gold Council on sales under the Central Bank Gold Agreement had a limited impact on trading, although it was considered slightly supportive.

"It's a positive development because the number is so small," Pawlicki said. "I think it did create a little strength in the gold market, but it was very small."

The low sales figure was not a major surprise since this has been the recent trend. Central banks have sold 7.2 metric tons under the third Central Bank Gold Agreement as of April 20, including 5.6 by the International Monetary Fund through Feb. 28, the WGC said. Still, this is a fraction of the yearly ceiling of 400 metric tons. The current agreement year began in late September.

The approach of a Federal Open Market Committee meeting also may have kept gold sideways, as activity tends to slow ahead of a post-meeting statement. A meeting begins Tuesday and ends Wednesday.

Nedoss commented that there is potential for buy stops--preplaced orders triggered when certain chart points are hit--to be activated should June gold get above $1,162.80 an ounce. Above this, further resistance lies around $1,170, said Michael Gross, broker and futures analyst with OptionSellers.com.

On the downside, Nedoss put chart support around $1,148 and $1,142. Below this, Gross pegged further support around $1,124.

Meanwhile, silver fared better than gold on hopes for improving industrial demand as the economy recovers, Gross said. Slightly more than half of silver's demand is industrial in nature. Most-active May silver rose 14.5 cents, or 0.80%, to $18.337 an ounce.

"But the gains are being tempered by the [stronger] dollar," Gross said.

Support for May silver lies around $17.49, Gross said. Resistance lies at $18.60.

Meanwhile, July platinum settled up $3.30 or 0.19%, to $1,745 an ounce. June palladium rose $3.20, or 0.57%, to $566.40.

Both metals drew light speculative demand, said one trader, as investors continue to anticipate higher prices down the road as economic recovery leads to increased demand for the metals, used for auto catalysts.

"The spec side of the market is thinking it's going to move higher, but you get intermittent bouts of profit-taking," the trader said. Some traders opted to sell to exit positions in which they previously bought, in order to book profits.

 
Settlements (includes open-outcry and electronic trading): 
London PM Gold Fix: $1,154.50 versus $1,139.50 on Friday 
Spot gold at 1:33 p.m. ET: $1,153.75, up $4.15 from previous day; 
                           Range: $1,150.55-$1,160.70 
June gold: $1,154, up 30 cents; Range $1,151.10-$1,160.70 
May silver: $18.337, up 14.5 cents; Range $18.235-$18.42 
July platinum: $1,745, up $3.30; Range $1,739.40-$1,757.50 
June palladium: $566.40, up $3.20; Range $562-$573.60 
 

-By Allen Sykora, Dow Jones Newswires; 541-318-8765; allen.sykora@dowjones.com

Source: http://online.wsj.com/article/BT-CO-20100426-713254.html?mod=rss_Commodities