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Sunday, May 6, 2012

Spot Gold prices down may 7 2012

Spot Gold prices down may 7 2012 : Gold edged down on Monday but managed to stay away from a 1-1/2 week low hit in the previous session, as sluggish U.S. jobs data fuelled hopes for more monetary easing, while elections in Europe added to worries on the euro zone debt crisis.

FUNDAMENTALS

* Spot gold had edged down 0.1 percent to $1,639.99 an ounce by 0039 GMT, off the low of $1,626.50 hit on Friday.

* U.S. gold lost 0.3 percent to $1,640.80.

* Socialist Francois Hollande ousted Nicholas Sarkozy in the French presidential election on Sunday and Greece's pro-bailout ruling parties suffered big losses, fueling concerns on whether the euro zone will be able to push through the austerity measures seen crucial to fight the debt crisis.

* Gold's decline was limited even as the dollar index jumped to a three-week high in reaction to the election results, as some investors see bullion as a safe-haven during political and economic uncertainty.

* U.S. employers cut back on hiring in April and more people stopped looking for work, adding to hopes that disappointing data may force the Federal Reserve to further ease its monetary policy.

* Economists at most major Wall Street firms still see about a one in three chance the Federal Reserve will launch another massive round of monetary stimulus in an effort to prop up the economy, a Reuters poll showed on Friday.

* Friday's purchasing managers indexes (PMIs) showed that the euro zone economy worsened markedly in April and suggested that a recession could extend to mid-year and be deeper than previously thought.

* Speculators raised long bets in gold to the highest level since early April in the week of May 1, but reduced their silver net long positions to the lowest level since early January, the data from the U.S. Commodity Futures Trading Commission said.


MARKET NEWS

* U.S. stock index futures fell after Greek voters trounced ruling parties in elections on Sunday, a result that put the country's future in the euro zone at risk.

* The euro tanked in early Asian trade on Monday, breaking below its well-worn range from the past three months.

DATA/EVENTS
0830 EZ Sentix Index May
1000 Germany Industrial orders March
1400 U.S. Employment Index April
1900 U.S. Consumer Credit March

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