NEW YORK, July 25 (Reuters) - COMEX gold futures found their footing at slightly lower levels Thursday as investors sifted through the past few days of volatility and reformulated strategies in a frenzied environment.
"Gold is very quiet. We're probably going to see it rangebound in here as traders look to regroup a little bit," said James Quinn, commodity market analyst for AG Edwards.
COMEX floor brokers said business was very quiet on Thursday, with some light speculator selling and some very light bank and dealer buying.
COMEX estimated early volume at 8,000 lots on Thursday.
"I think the market is trying to consolidate here. I can genuinely say it's just marching to its own beat. It doesn't seem to be following the dollar or the stock market, and volume is light," said a gold broker.
Benchmark August gold futures at the New York Mercantile Exchange were off $1.60 at $309.80 an ounce, trading $308.90 to $312.40.
Spot gold > was quoted at $310/310.50, down from $311.30/1.80 late Wednesday. The afternoon gold fix in London was $309.45 which was a fresh 10-week low.
With traders of currencies, stocks and bonds taking time to dust off the damage of this week's panic-driven activity, gold players too remained hesitant to jump back into the fray, and chose instead to take time to assess their next moves.
"No one really knows what's happening. Everyone is asking everyone else where they think the markets are going. And these are the guys who are supposed to know," said one broker.
One technician said the immediate range stands between $309.20 to $309.80 for the COMEX August gold contract.
For the next session or two, said Quinn, "I think the market can test anywhere from $307 on the downside to $312 on the upside. I think that's going to be the range."
JP Morgan's daily metals strategy report said Thursday that gold's drop to lows that were within reach of the $306 target renders it neutral. The report said to look for confirmation with either a developing base or a continuation of the current bear run.
But others said they thought it was too early to say with any certainty that gold was either basing or priming for a further fall.
Quinn also pointed out that market players are keenly watching open interest on COMEX gold futures. He said open interest fell by only about 6,000 lots on Thursday despite the heavy onslaught of selling.
With speculators carrying a long exposure of greater than 70,000 contracts as of last week's report, he said some players fear further liquidation may be looming over the gold market. That threat would be heightened if gold failed to rally in the next few sessions, he added.
Silver, which has suffered sizable losses along with gold, was also near flat on Thursday.
COMEX September silver futures steadied at $4.86 an ounce, after sliding down to $4.84 and rising to a high of $4.89.
Spot silver was nearly even at $4.84/85 against Wednesday's close. The London fix was unchanged at $4.86.
One technician said his latest view is that silver has turned neutral with the decline through $4.94 and that it is unclear whether the market will base out and rally back to the highs, or merely consolidate heavy losses before extending its slippage.
NYMEX October platinum rose $2.50 to $516.50 an ounce. Spot platinum was quoted at $519.5/527.50.
September palladium futures gained $6.50 to $328.50 an ounce. Spot palladium traded at $324.5/336.50.