(changes dateline, recasts with COMEX, bullion closing prices)
NEW YORK, Nov 27 (Reuters) - COMEX gold slipped Wednesday on profit-taking as stock prices and the dollar rallied, but the yellow metal's movements were were minimized before a long holiday weekend.
U.S. financial markets reacted enthusiastically to a raft of data showing the economy appeared to be emerging from a period of sluggish growth. But gold was subdued even though floor turnover looked quite heavy.
Most traders and analysts were expecting the precious metal to remain entrenched in a narrow range due to the closure of New York's COMEX for a four-day weekend starting on Thursday, the U.S. Thanksgiving holiday.
February gold ended 90 cents lower at $317.80 an ounce, moving between $319.50 and $317.70, with most of the slippage coming in the last half hour.
"We're closing the market for four days and the stock market is up," explained a desk broker. "Gold held up fairly well considering what the stock market has done, it seems to me."
Estimated volume was 70,000 contracts.
Some of that was last-minute rollovers as December gold, the active contract until yesterday, went into delivery. But dealers said there was good fund selling late in the day, and buyers were present on the way down.
Spot bullion was quoted late at $317.00/50, versus $317.75/8.25 at the previous close. London bullion dealers fixed the afternoon spot reference price at $317.85 Wednesday.
Gold initially shrugged off a U.S. Commerce Department report that October personal income rose 0.1 percent. Spending was up a healthy 0.4 percent, suggesting the consumer is helping the U.S. economy out of its slow patch.
October durable goods orders, meanwhile, were up 2.8 percent, after a revised 4.6 percent drop in September.
According the University of Michigan, the monthly U.S. consumer sentiment index bounced to 84.2 in November from October's nine-year low at 80.6, as a firming job market, a stock market rebound and a Federal Reserve interest rate cut lifted American spirits.
Instead of focusing on the potential for increased retail demand for jewelry, gold fell as investors rotated into stocks, pushing the Dow Jones industrial average up 244 points, or 2.8 percent by early afternoon when gold trade wrapped up.
With commodity funds holding a hefty collective net long position, the gold market is at risk to positive economic or geopolitical news which could spark a sell-off as those longs get squared.
"With speculators fairly long of gold and little evidence of decent physical demand around, the metal continues to trade quietly, driven by moves in forex and equity markets," John Reade, precious metals analyst with UBS Warburg, said in a daily report.
But few expect wholesale liquidation of safe-haven positions, with United Nations arms inspectors beginning their search of Iraq and the United States threatening to go to war over any intransigence or cheating by Baghdad.
Other precious metals were also quiet.
In silver futures , March eased 1.5 cents to $4.435 an ounce, having touched $4.465 and $4.43.
Spot silver closed at $4.41/43, down from $4.43/45 late Tuesday. It fixed at $4.44.
NYMEX March palladium was unchanged at $266 an ounce. Spot palladium was last at $262/270.
January platinum fell $3.10 to $581.90 an ounce. Spot platinum was at $583.90/588.90.