RTRS:PRECIOUS-Gold edges up ahead of Bernanke testimony
* Fed official express readiness for more easing
* Spot gold may fall to $1,597/oz - technicals
* Coming Up: Fed's Bernanke testifies; 1400 GMT
(Updates prices; adds comments; writes through)
By Rujun Shen
SINGAPORE, June 7 (Reuters) - Gold inched up on Thursday as
investors await the Fed chairman's comments due later in the
day, hoping for hints of new easing measures in the light of
weak economic data and the euro zone crisis.
Investors will scrutinise U.S. Federal Reserve Chairman Ben
Bernanke's testimony in front of a congressional committee for
intent to further ease money supply, which would buoy gold's
appeal as a hedge against inflation down the road.
Bernanke's testimony is due a day after the European Central
Bank resisted pressure to undertake any immediate stimulus,
nonetheless left rates steady and expressed concerns on
increasing headwinds the single currency bloc faces.
"People have become more bullish after last Friday's
employment figures. The market may be entering a new phase on
the expectation that there will probably be some sort of
easing," said Yuichi Ikemizu, head of commodity trading, Japan,
at Standard Bank.
Gold has held around the $1,620 level since surging more
than 4 percent last Friday after disappointing U.S. employment
data shook investors' confidence in the economic recovery and
fuelled hopes for more easing.
Spot gold edged up 0.2 percent to $1,620.16 an ounce
by 0302 GMT, not too far off the one-month high of $1,640.50
reached in the previous session.
U.S. gold futures contract for August delivery lost
0.8 percent to $1,621.80.
The euro edged lower against the dollar, after jumping
sharply in the previous session after the ECB left rates and
economic outlook unchanged.
Germany and European Union officials are urgently exploring
ways to rescue Spain's debt-stricken banks although Madrid has
not yet requested assistance and is resisting being placed under
international supervision.
Investors will watch the Greek elections on June 17 and a
Group of 20 meeting on June 18-19 to gauge whether there is
political will in Greece to stay within the euro zone and what
actions will be undertaken to fight the bloc's debt crisis.
Flow in Asia's physical gold market was sluggish, as market
participants await a clear trend, especially as seasonal demand
is low.
"For the jewellery market, May to July is a quiet season and
there is no significant demand from industrial users either,"
said Dick Poon, manager of precious metals at Heraeus in Hong
Kong.
Spot silver lost half a percent to $29.23, after
jumping more than 3 percent and hit a one-month high of $29.88
in the previous session.
Precious metals prices 0302 GMT
Metal Last Change Pct chg YTD pct chg Volume
Spot Gold 1620.16 2.73 +0.17 3.60
Spot Silver 29.23 -0.14 -0.48 5.56
Spot Platinum 1458.74 2.14 +0.15 4.72
Spot Palladium 626.70 3.47 +0.56 -3.95
COMEX GOLD AUG2 1621.80 -12.40 -0.76 3.51 10678
COMEX SILVER JUL2 29.20 -0.29 -0.99 4.59 4243
Euro/Dollar 1.2562
Dollar/Yen 79.35
COMEX gold and silver contracts show the most active months
