NEW YORK, Feb 26 (Reuters) - COMEX gold firmed in quiet trade early Wednesday, taking a breather after the previous seesaw session while jitters about a war in Iraq kept the safe-haven metal underpinned.
"It's just kind of steady so far," said James Pogoda, vice president of precious metals at Mitsubishi International Corp. "We're just waiting for the next headline."
April gold at 0928 EST was up $1 at $353.40 an ounce, with light fund buying seen through a large broker on the floor. It traded in a tight $351.30-$353.80 range.
On Tuesday, a surprise sale of 30 tonnes of bullion by Portugal first announced by the European Central Bank sent the contract reeling from a near two-week high above $360. Rumors that Iraq might be willing to disarm hammered gold again after it tried to rally back.
"Prices moved both ways in approximate $5 an ounce ranges on knee-jerk reactions to a rash of political rumors concerning Iraq, with the final move coming to the downside as the markets took on a comparatively sanguine view," wrote Rhona O'Connell, head of market research at the World Gold Council.
Spot gold was quoted at $352.20/3.00, up from $351.40/2.20 at Tuesday's close. London bullion dealers fixed the morning spot reference price at $352.55.
The dollar and the stock market were little changed in morning trade, providing no cues for gold.
Dealers expected gold to settle into a $350-$365 range, with a bias to the upside after the shakeout from 6-1/2 year highs early this month.
Bullion has a history of price volatility in times of war. Prices rose $45 to $415 an ounce when Iraq invaded Kuwait in August 1990, then fell $40 when the United States launched a war to evict Iraq from the oil-rich Gulf emirate in January 1991.
A senior U.S. official said Wednesday the United States doubted that Russia or China would veto a new U.N. Security Council resolution designed to open the door to war.
The U.S. and Britain dismissed proposals on Tuesday to give more time to U.N. arms inspectors in Iraq, who are gearing up for a possible showdown if Baghdad does not start destroying dozens of missiles.
Chief U.N. weapons inspector Hans Blix has ordered that Iraq begin scrapping its Al-Samoud 2 missiles by Saturday, a demand that even those opposed to war, such as France and Russia, insist Baghdad must follow.
But in an interview with CBS News to be broadcast Wednesday, President Saddam Hussein hinted he might refuse, denying the missiles exceeded the 150 km (90 mile) range set down in U.N. resolutions.
March silver was 0.3 cent firmer at $4.645 an ounce, trading in a $4.665-$4.625 range. The contract is in the midst of switching to next active May before first notice day Friday.
Spot silver fetched $4.64/66, unchanged from the close. It fixed at $4.625 an ounce.
NYMEX April platinum was off 60 cents at $668.50 an ounce. Spot was last priced at $675.00/680.00.
March palladium was 50 cents easier at $251.00 an ounce while spot palladium was at $247.00/252.00.