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PRECIOUS-Gold on back foot as Spain woes pressure euro
May 30, 2012 / 12:57 AM / in 5 years

PRECIOUS-Gold on back foot as Spain woes pressure euro

SINGAPORE, May 30 (Reuters) - Gold edged down on Wednesday
as investors continued to fret about the euro zone debt crisis
with Spain's borrowing costs spiralling towards unsustainable
levels, keeping the euro close to its lowest level in nearly two
years.	
    	
    FUNDAMENTALS	
    * Spot gold edged down $1 to $1,553.54 an ounce by
0029 GMT, after sliding more than 1 percent in the previous
session.	
    * U.S. gold inched up 0.3 percent to $1,553.30.	
    * Spanish bond yields rose on Tuesday as investors fretted
that efforts to recapitalise the country's frail banking sector
could mean the government selling more bonds and adding to the
growing pressure on public finances.  	
    * Rating agency Egan-Jones cut Spain's credit level for the
third time in less than a month, as the country's weak banks
continue to worry investors. 	
    * Greece's pro-bailout conservatives are leading ahead of a
national parliamentary election next month that may determine
whether the country remains in the euro zone, an opinion poll
showed on Wednesday. 	
    * U.S. home prices edged higher for the second month in a
row in March as the housing recovery picked up traction, while
gains in some of the hardest hit areas suggested the improvement
was becoming more broad-based. 	
    * Holdings of the iShares Silver Trust, the world's
largest silver-backed exchange-traded fund, dropped nearly half
a percent from the previous session to 9,619.03 tonnes by May
29, the lowest in nearly two weeks. 	
    * For the top stories on metals and other news, click
, or 	
    	
    MARKET NEWS	
    * U.S. stocks rose on Tuesday as signs Greece would stay in
the euro zone were enough to spark buying in what has been a
weak month for equities, while Facebook plumbed new lows on high
volume. 	
    * U.S. crude futures held steady on Wednesday, after a
downgrade of Spain's credit rating sent the euro to a near
two-year low against the dollar and pressured oil prices a day
earlier. 	
    * The euro traded close to a near two-year low hit in the
previous session, as worries about Spain's soaring borrowing
costs and struggling banking sector drove investors away from
the single currency. 	
   	
    DATA/EVENTS	
 0800  EZ        Money-M3 3m moving av     Apr                           
 0900  EZ        Business climate          May                           
 0900  EZ        Economic sentiment        May                           
 1130  India     M3 Money Supply           41042                         
 1145  U.S.      ICSC chain stores yy      Weekly                 
 1400  U.S.      Pending home sales        April  
 2315  Japan     Manufacturing PMI         May
 2350  Japan     Industrial output         April     
    	
    PRICES	
    Precious metals prices 0029 GMT
  Metal             Last    Change  Pct chg  YTD pct chg    Volume
  Spot Gold        1553.54   -1.00   -0.06     -0.66
  Spot Silver        27.77   -0.05   -0.18      0.29
  Spot Platinum    1423.24   -1.91   -0.13      2.17
  Spot Palladium    601.72    0.60   +0.10     -7.78
  COMEX GOLD JUN2  1553.30    4.60   +0.30     -0.86          704
  COMEX SILVER JUL2  27.75   -0.04   -0.15     -0.59          710
  Euro/Dollar       1.2475
  Dollar/Yen         79.52
  COMEX gold and silver contracts show the most active months
 	
 (Reporting by Rujun Shen; Editing by Himani Sarkar)

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