Funds are net buyers of Comex gold and their positions quaring ahead of the year-end will also likely put downward pressure on gold, he said.

He expected gold to trade between $292 and $296 this week.

Silver futures ranged from 2.6 to 4.7 yen per 10 grams lower. Benchmark October ended off 3.8 yen at 189.5 yen.

In the currency market, the dollar traded between 122.53 and 123.07 yen by late Tokyo trade on Tuesday. Weaker US stock prices overnight hurt the dollar, but losses were limited by news that a medium-sized Japanese general contractor had filed for bankruptcy protection on Tuesday.

Platinum and palladium futures also closed lower, depressed by dollar/yen movement and heavy selling by trading firms.

"Palladium was depressed as trading house operators who previously accumulated large long positions areactively unwinding their positions," one brokerage analyst said.

Palladium was also weighed down by concern that Russia may heavily sell palladium on the spot market before the government's 1998 PGM export quota expires at the end of this month, he said.

Platinum futures ranged from 19 to 35 yen per gram lower. Benchmark October ended off 35 yen at 1,344 yen.

Palladium futures ranged from 15 to 35 yen per gram lower.Benchmark October ended off 28 yen at 989 yen.