Bullion traders ignore crude oil moves

The bullion markets are moving in a narrow range at a steady pace as the year-end approaches with weak US dollar and central bank diversifications providing the much-needed support.

Euro re-bounded nicely against a soft dollar yesterday by consolidating at the 1.3150/60 zone, and got a boost from an 8% reserve diversification announcement by the United Arab Emirates.

Normally, weak crude oil prices would drag gold prices, but yesterday's sharp sell-off in the energy markets was ignored by gold traders, and gold future closed at $629.40/oz and silver at $12.72.