The movements of silver and platinum group metals is more dependent on perceptions on prospects for the global economy and many investors are holding to the sidelines.

Gold

Gold bullion was firmer during early European trading, largely on currency considerations as the yen regained some of the ground lost against the dollar on Wednesday following an interest rate reduction.

"If this correlation continues to prevail, our impression is that the yen will weaken and gold will go down as well," said Hanspeter Hausheer of SBC Warburg Dillon Read, adding that it was unclear why there was such a tight link in the market.

He said the market was also considering whether further central banks will sell gold after Luxembourg's recent sale.

Gold was not expectedto show wide movements, but if it broke through short-term support at around $282.00 an ounce it could test recent lows around $273.00.

At 0745 GMT spot gold was quoted at $285.60/286.10, up $1.60 from Wednesday's New York close.

Silver

Silver was slightly steadier at the European start but many investors were sidelined, watching for further signals on the health of the global economy.

Hausheer said that this would be the main factor governing silver, as an industrial metal.

Political upheavals surrounding US president Bill Clinton were also leading to investor caution, he added.

At 0746 GMT spot silver was quoted at $4.97/5.00 slightly up from the $4.93/$4.96 New York finish.

Platinum

The PGMs were also firmer, continuing to be underpinned by uncertainty over who will be Russia's prime minister.

"As long as there will be uncertainty on who will be the next acting prime minister this could have some positive impact on the price because there could be the danger of furtherdisruptions of exports as nobody is in place to give export licences," Hausheer said.

Longer term, further signals of further slowing in the world economy are likely to drive PGMs lower.

At 0747 GMT spot platinum was quoted at $362.50/$364.50, up $4.80 from Wednesday's close.