RTRS: PRECIOUS-Gold steady on Greek crisis, US growth concerns
By Rujun Shen
SINGAPORE, June 2 (Reuters) - Spot gold prices held steady
on Thursday, after rising to a one-month high in the previous
session when Moody's downgrading of Greece and weak U.S.
economic data sent some investors to seek a safe-haven in
bullion.
Fears mounted that the U.S. economy may be running out of
steam as data showed that companies hired far fewer workers than
expected in May and output in the manufacturing sector hit its
lowest level since 2009. [ID:nN01147563]
"We've recently seen a lot of worse-than-expected economic
data," said Ong Yi Ling, an analyst at Phillip Futures, "The
economic uncertainty will keep gold underpinned."
If gold effectively broke above a key resistance level at
$1,550, it could rise above the record high of $1,575.79, set on
May 2, Ong said.
Spot gold was barely changed at $1,540.50 an ounce by
0605 GMT. It hit $1,550.14 on Wednesday, its highest since May
3.
U.S. gold GCcv1 edged down 0.1 percent to $1,541.60.
Spot gold is technically neutral, as signals are
conflicting before it moves out of a range of $1,528 to $1,550,
said Reuters market analyst Wang Tao. [ID:nL3E7H205J]
The optimism on solving Greek's debt crisis faded as Moody's
slashed the country's credit rating by three notches, citing a
growing risk that Athens would fail to stabilise its debt
position without a restructuring. [ID:nLDE75038N]
"Along with other commodities being sold on weak U.S. data
that leads people to expect a slow-down in the economy, I doubt
gold will be able to stand on its own unless we make fresh highs
very soon," said a Hong Kong-based trader.
"Otherwise investors would likely take profits and gold
would move lower along with other metals."
London copper extended losses on Thursday, under pressure
from data showing slower growth in the global manufacturing
sector, which heightened anxiety that the economic recovery may
hit a soft spot. [ID:nLDE7500VU]
Precious metals with industrial applications, such as
silver, platinum and palladium, regained some lost ground from
the previous session, but remained under pressure.
Spot silver gained 1.1 percent to $37.20, reversing a
4.3 percent drop on Wednesday.
Spot platinum was little changed at $1,813.74, off a
one-month high of $1,834 hit in the previous session. Spot
palladium was trading at $770.22, up 0.6 percent.
The dollar held steady just above a one-month low against a
basket of currencies on Thursday, and the euro remained
well-below a recent four-week high against the greenback.
