NEW YORK, May 22 (Reuters) - COMEX gold was softer early Thursday as dealers looked to cash in on its rally before a U.S. holiday weekend, but the metal looked secure around $370 an ounce with the dollar on the ropes and terror fears acute.
New York financial markets will be closed Monday for Memorial Day, and the NYMEX will wrap up COMEX metals trade around midday on Friday.
June gold at 0939 EDT was down $1.60 at $370.60 an ounce, trading $373.00 to $369.10. On Wednesday it rose to $373.50, where it last traded on Feb 10 when gold was just coming off a safe-haven rally to its priciest in 6-1/2 years.
"Everyone is geared up long and strong, and now we're going to get this absence of a long weekend. If you've been long you have definitely made money the last week," said a gold trader.
"I would think you might see a little bit of lightening up and then people might come in to buy it back early next week," he added.
The euro was still flexing its muscle, and European investors were armed with an attractive gold exchange rate. But gold lost momentum when the euro stayed below Wednesday's 4-year high against the dollar at $1.1744.
Spot gold was quoted at $369.70/0.40, down from $372.75/3.45 late Wednesday. London bullion dealers fixed the morning spot reference price at $369.60.
The dealer said the $368 to $370 area should hold as support.
Gold roared back into fashion as a hard asset and risk insurance this week after the United States raised its color-coded terror alert level to orange, the second highest.
Al Jazeera television broadcast an audio tape of what appeared to be a top al Qaeda official urging Muslims to wage holy war against Americans, raising fears that another big attack was planned.
June gold rallied to within $20 of its Feb 4 peak at $391.70, having rebounded more than $50 from its April low at around $320.
July silver was off 0.5 cent at $4.72 an ounce, trading in a $4.76-$4.71 range. Spot silver fetched $4.71/73, down from the close at $4.72/74. The London fix was $4.715.
NYMEX July platinum was off $5.80 at $664.50 an ounce, digesting Wednesday's rally to a 2-month high. Spot was at $668.00/673.00.
June palladium was off $6 at $173.00 an ounce. Spot palladium last fetched $167.00/173.00.