By The Australian · June 9, 2011 · 3:35 am · Leave a Comment Click here to read the whole story or read an excerpt below. By Jerry DiColo GOLD and other precious metals futures fell today, held back by a rise in the US dollar against the euro as worries about European debt grip investors. The most actively traded gold contract, for August delivery, fell $US5.30, or 0.3 per cent, to settle at $US1538.70 a troy ounce on the Comex division of the New York Mercantile Exchange. Silver for July delivery, the most actively traded contract, fell 1.2 per cent to settle at $US36.620 a troy ounce. The euro-zone and its currency remain plagued by Greece’s debt problems. The country’s creditors acknowledged in a report that Greece will remain locked out of financial markets all through next year, and also said Greece’s recession will be deeper and longer than projected. The report pushed the US dollar higher against the euro, and consequently kept modest pressure on gold prices. While gold is often a safe haven in times of economic turmoil, a strong US dollar can also weigh on gold by making the metal more expensive for buyers using other currencies. Metals markets have kept close watch on signals in recent weeks that US economic growth might be slowing, particularly a mix of several weak data points in recent days, including disappointing employment data on Friday. Speaking at a banking conference yesterday, Federal Reserve chairman Ben Bernanke said the current economic recovery remains “frustratingly slow”. But he avoided speaking about a third round of government bond buying, known as quantitative easing. Investors are hoping for another program from the central bank designed to support the economy, when the second round of quantitative easing, or QE2, winds down later this month. That $US600 billion ($565bn) bond-buying program has been a major impetus for the rise in precious metals over the past year. The program pushed down the value of the US dollar, sending traders fleeing to safe-haven investments. A new government stimulus would likely keep precious metals prices moving higher. But analysts say that tepid economic conditions over the next few months will also have investors looking for safe-haven assets. “In the next few quarters, the economic backdrop for investor appetite of gold and silver seems rather supportive,” Barclays analysts wrote in a note to clients. Gold, which tends to hold its value in volatile market conditions, is often seen as a good investment in times of economic uncertainty. Still, gold hasn’t settled above the key $US1550.00 level in more than a month, a technical barrier that could provide further resistance, traders said. Nymex palladium for September delivery, the most actively traded contract, fell $US3.80, or 0.5 per cent, to $US805.70 a troy ounce. Platinum for July delivery, the most actively traded contract ended nearly flat at $US1831.20 a troy ounce.

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