Gold was seen hovering near its 4 weeks high level yesterday as it was supported by investors' nervousness over the concern in Europe to avert Greek debt default and it overshadowed rebound in the euro.
We expect the prices to remain volatile as investors are trying to find cues from the developments of sovereign debt crisis in Greece.
The discouraging US economic data may keep investors skeptical about the pace of economic recovery.
The US consumer confidence fell for the month of May. China's manufacturing expanded at the slowest pace in nine months in May.
We expect the fundamentals to keep supporting gold where as the recovery in dollar and hopes that Greece's sovereign-debt woes may be closer to a solution may take away some of the metal's shine.
Investors are waiting for the nonfarm payrolls data of US on Friday which may further set direction for prices.
