Gold prices continued to extend gains on Tuesday as euro strengthened against the dollar, after falling to almost two year low in the preceding week even as both wobble on a shaky ground amid ongoing debt crises concerns in the euro zone. Meanwhile, silver prices have also edged higher in mid-day trading. While euro got some boost as investors cut back their huge bearish bets in the currency, the dollar felt the heat after a data on U.S. consumer confidence for May showed a sharpest decline in last eight months. The dip in the consumer sentiment was blamed at lackluster stock market performance, timid job market and global economic slowdown. However, the euro remains vulnerable to another bout sell offs as Greece political crisis and Spain’s banking sector weakness continues to hound the market sentiment. At last check, U.S. gold futures climbed up 0.55%, at $1577.50 an ounce. Commenting over gold price’s possible rebound in connection with the crisis in Greece, Peter Fertig, a consultant at Quantitative Commodity Research, said to Reuters, “Gold will be in a critical position at least until the Greek general election taking place on June 17. Should there be a majority for a government led by the conservative New Democracy; chances are quite good that gold would rebound.� “That would also support the euro; it would support stock markets�, added Fertig. But before Greece’s elections results, the spotlight is likely to remain on U.S. non-farms payrolls for the month of May. Whereas economists polled by Reuters show that 150,000 new jobs were added in this month, any downward variance in the data could weaken the dollar thereby boosting bullion prices. In some other precious metal markets, silver inched up 0.6 percent at $28.57 an ounce. The metal stands outperformed by gold this month, and is on course to fall 8 percent, having touched a 2012 low earlier in May at $26.73 an ounce.

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