LONDON, May 31 - Gold traded around New York's closing levels in Europe on Wednesday, consolidating in the near term, but dealers saw fresh moves on May's 26-year peak of $730 an ounce further ahead.

"The corrective phase isn't over yet. I am looking for choppy, sideways action for the next couple of weeks," John Ventre, director at Beresford Gabler Securities, said.

"This correction doesn't put the medium-term bull trend in doubt," he added, noting that his long-term target for gold is $880 to $900 later in the year.

Spot gold (XAU=) was $653.60/$654.40 at 0959 GMT versus $656.80/657.60 in late New York.

Gold has soared this year, along with almost all commodities, on a huge inflow of money from speculative funds and fueled by worries about the global economy.

"Vulnerable longs have exited the precious metals market -- or insulated their longer-term positions from losses via options," investment bank UBS said in a daily report.

"We believe this has greatly reduced the chances of a further down-leg in precious metal prices."

The yen rose against the euro and the dollar after the Chinese central bank reaffirmed its commitment to deepen foreign exchange reform and boost the flexibility of its currency. [ID:nL31398969]

But the euro-dollar rate was little changed at $1.2865 (EUR=).

Spot silver (XAG=) was at $12.97/$13.07, down 10 cents from New York.

"We could see silver at $14 while staying within a broad consolidation pattern and $12.34 should provide some support," Beresford's Ventre said.

Platinum (XPT=) was $1,272/$1,282 an ounce versus $1,283/1,288 and palladium (XPD=) was down $3 at $352/$357.

"Platinum has been supported above $1,265 with consumer interest still waiting below the market for greater pullbacks," Julia Hamblett of Dresdner Kleinwort Wasserstein said in a report.

"However, speculative interest has been unable to drive the metal to the prior highs, and platinum has remained below $1,300. It would seem that further external drivers or news will be needed to prompt wither further buying at current levels or increased profit taking." (Additional reporting by James Regan in Sydney)