LONDON (Reuters) - Gold ended just a touch higher in New York on Tuesday as dealers avoided big moves ahead of testimony by U.S. Federal Reserve Chairman Ben Bernanke later in the week.
The metal has struggled to breach key technical levels after hitting a five-week high last week, but might get support from firm oil prices and the dollar, which stayed near record lows against the euro, analysts said.
"The dollar is still the main driver of gold prices and there will be a set of important data points this week, which may influence the euro/dollar and hence gold," said Michael Widmer, research director at Calyon Corporate and Investment Bank.
"We expect gold to trade within a tight range as investors are unlikely to take big positions ahead of the minutes from the Fed meeting, Bernanke's testimony and U.S. inflation data," Widmer added.
Gold fell as low as $662.00 an ounce before recovering to $664.50/665.30 by 3:30 p.m. EDT (1930 GMT), against $664.00/664.80 in New York late on Monday.
Most-active gold for August delivery on the COMEX division of the New York Mercantile Exchange settled down 40 cents at $665.90 an ounce, dealing between $663.00 and $668.40.
The dollar was largely unchanged against the euro after the U.S. government reported the latest production price index and capital inflow data.
A weaker dollar makes gold cheaper for other currency holders and often lifts bullion demand. The metal is also generally seen as a hedge against oil-led inflation.
Nearby U.S. oil futuresended just below $74 a barrel on Tuesday after surging above $75 a barrel in early trades, which marked the loftiest level since last August
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