Gold Prices Hemmed In

The greenback, which tends to move in the opposite direction to gold prices, was providing a modest pointer for bullion traders. One dollar would recently buy 120.6 yen, up from 120.45 late Monday. One euro would purchase $1.292, down marginally from $1.2937 previously.

Turning to the official sector, the European Central Bank said it sold 28 million euros of gold and receivables, or about 1.9 tons, last week.

Meanwhile, the U.S. Mint says that full-year sales of its 24 karat (99.99% pure) one-ounce buffalo coins outstripped those of the more established 22 karat (91.7% pure) eagles for 2006. Dealers snapped up 323,000 buffalos, which only went on sale at the end of June, compared to 261,000 ounces of gold eagles. But the tide may be turning for the eagle. By mid-January the Mint says it sold 9,000 buffalos and 24,000 ounces of eagles.

In the precious metals patch, CIBC World Markets dinged silver producer Coeur d'Alene Mines(CDE Quote) down to a rating of sector-perform from sector outperform. Silver closed at $12.68 an ounce, down 26 cents, while Coeur was losing 2.7% recently.

Freeport-McMoRan Copper & Gold(FCX Quote) reported lighter-than-expected fourth-quarter earnings of $1.99 a share, below the consensus forecast of $2.12 and down from $2.19 a year before. The company cited lower volumes of metal sold.

The stock was off 3% recently.