NEW YORK, June 19 (Reuters) - COMEX gold was hardly changed early Thursday after cutting overnight losses even as the dollar continued to grind higher against the euro on more signs of recovery in the U.S. economy.
At 9;13 a.m. EDT, August gold was off 30 cents at $357.50 an ounce, in the middle of a $359.20-$355.50 range.
Spot gold was quoted $356.80/7.30, down from the close at $357.10/60, but up from London morning fix at $356.45.
"Its ho-hum," said a floor broker. "Gold's holding its own right now. With the dollar up and the euro the way it is, I thought gold would be down in the $356/355 area. You still may see that."
Optimism that the worst of the economic malaise was over gained traction after the Labor Department reported claims for unemployment benefits fell 13,000 to 421,000 last week. The four-week average for jobless claims also fell to 432,000.
Investors rotated back into the dollar, cashing in gold holdings as financial market worries subsided. Funds are so overbought on the COMEX they do not need a big excuse to take profits.
But the Washington Post newspaper reported Thursday that the Federal Reserve was still concerned that there are no signs of a solid pickup in U.S. economic growth and appeared certain to cut the fed funds target rate when policy makers hold their 2-day meeting next week. By how much is the question.
The Post said a half a percentage point cut, which would bring the fed funds rate to 0.75 percent, seemed more likely than a quarter-point reduction.
The stock market, trading around its highest in a year, looked set for another good day, showing less concern about the outlook for growth and profits.
The euro fell to $1.1586 overnight and was last quoted $1.1640/45, down from Wednesday's close at $1.1682/86.
Because gold is priced in dollars, the weak euro erodes the bullion buying power of European investors.
Only days ago the euro was challenging its late-May highs and gold was trading above $365. Gold hit $376.80, its highest since the February peaks, on May 27 as the euro set a record against the dollar at $1.1932.
"Today, it seems we're just sitting on our hands waiting to see what direction we will truly go in," said another broker. "Everybody, including myself, is bearish, but there is nothing to back it up."
July silver was up 0.2 cent at $4.56 an ounce, trading $4.51-$4.575. Spot silver was unchanged from the close at $4.55/57 and up from the fix at $4.5225.
NYMEX July platinum shot up $13.10 to $679.00 an ounce, hitting its highest since March 13 at $683. Spot platinum was at $676.00/681.00.
Because platinum is an industrial metal, used widely in automotive catalytic converters and in jewelry, its price often rises on signs of increased economic activity.
"All we've seen so far is some fund buying on the floor of the exchange," said a refinery dealer.
September palladium was $4.65 lower at $174.10 an ounce. Spot palladium was quoted at $174.00/179.00.