U.S. gold futures closed slightly higher on COMEX in last trading session, shortly after Fitch Rating cut Spain's debt ratings, renewing fears of spreading euro zone credit problems and pressuring the euro, which pushed some gold investors to cover short positions ahead of the long holiday weekend.
IN FOCUS
- The world's largest gold-backed exchangetraded fund, the SPDR Gold Trust, said its holdings totaled 1,267.930 tonnes as of May 31 unchanged from the previous business day.
- The world's largest silver-backed exchange- traded fund, the iShares Silver Trust, said its holdings rose to 9,258.42 tonnes as of May 31, unchanged from the previous business day.
- Canada's Crocodile Gold Corp said commercial production at its Union Reefs mill in Australia will begin on Tuesday, as target throughput, grades and recoveries are now being met on a consistent basis. The company added it remained on track to produce 100,000 ounces of gold in 2010, increasing to 200,000 ounces in 2011.
- Global gold demand fell 25 percent to 760 tonnes in the first quarter of 2010, driven by a 99 percent drop in buying of gold for physically-backed exchange-traded funds (ETFs), but was expected to rebound in the rest of the year, the industry-funded WGC said earlier this week.
- Zimbabwe's Duration Gold expects to produce 100,000 ounces of gold per year by 2012, on the back of the country's liberalised gold trade and an improving investment climate, a company official said.
- India's gold imports in May was around 17-18 tonnes compared with 28.6 tonnes imported in the same year ago period, the head of Bombay Bullion Association said on Friday citing provisional data.
FUNDAMENTAL OUTLOOK
Gold climbed to its highest and touched to the level of $1,221.75 an ounce early today after warnings from the European Central Bank and China about economic recovery. Fundamentals are also supporting the gold prices; buying at each level is recommended today.
