"Volumes were very light as the rally in gold prices has lost some momentum and silver prices are back down near longer term support levels," said John Tyree, a broker with FIMAT in New York.

"Gold may have some attraction as a safe-haven but silver has been trading like an industrial metal," he said.

"There may be a supply/demand deficit longer term in the silver market, but like other industrial metals it has sold off in the short term on the recent weakness in the world economic outlook," he said.

Comex December gold ended up 30 cents at $298.50 an ounce, after trading inside Monday's narrow $300.10-296.60 price range. Total Comex gold volume was estimated at 30,000 lots.

In the bullion market, spot gold ended quoted $296.30/80 an ounce, compared to the London Tuesdayafternoon fix at $295.55 an ounce, and the New York close Monday around $296.00/50.

In the past month though gold prices have recovered to their highest levels in four months, after seeing a 19 year low at $270.75 an ounce in August. Funds are now net long according to the CFTC Commitment of Traders report.

"Upside potential for gold prices should hinge on the extent of the down move in the U.S. Dollar, and to what extent a weaker dollar revives gold demand," said David Rinehimer, director of commodities research for investment bank Salomon Smith Barney.

"Seasonally, gold demand tends to increase in the fourth quarter, and an increased focus on gold as a safe-haven could provide a greater boost for both demand and prices," he said.

"Still, the demand outlook must be considered in the light of recessions spreading throughout many emerging markets and slowing global economic growth."

Comex December silver ended up 0.02 cent at $4.840 an ounce, after silver slumped last Friday to six week lows at$4.765. Total Comex silver volume was estimated at only 10,000 lots.

Funds were net long Comex silver by 23,203 lots as of October 6, up from 12,172 lots two weeks earlier, according to the CFTC data published Friday.

Spot silver ended quoted $4.83/86 an ounce, compared to Tuesday's London fix at $4.8650 and New York's close Monday at $4.83/86.

"All things considered, however, silver displays a weak tone in comparison to gold," Merrill Lynch analyst Ted Arnold said in a report.

Nymex January platinum ended up 50 cents at $344.30, while Nymex December palladium closed up 50 cents also at $279.00.

In South Africa a drawn out strike at the Springs refinery complex of South Africa's Impala Platinum Holdings Ltd (Implats) was in its 13th day, after workers at Lonrho Platinum's West Plats mine in South Africa ended a four-day strike last Thursday. (Reuters)