Gold falls over eurozone concerns
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E-mail Xinhua, May 22, 2012
Gold futures on the COMEX division of the New York Mercantile Exchange fell Monday as eurozone concerns served to cap off gold's attempt to rally.
The most active gold contract for June delivery fell 3.2 dollars, or 0.2 percent, to settle at 1,588.7 dollars per ounce.
The contract seesawed between small gains and losses for most of the session, getting some support from gains for oil futures and U.S. equities but dragged by persistent fears over the eurozone.
Worries about Greece and the eurozone debt crisis continued to feed caution in the financial markets. If the situation in Europe deteriorates, people will continue to shed risk and sell their gold positions, sail a marketing analyst.
With the World Gold Council last week seemingly fashioning quarterly supply and demand figures into a suspect bullish condition, the direction of the Chinese economy should become a key determinant for gold prices in the near term.
However, evidence of slowing Indian economy and slumping Indian gold demand is thought to more than offset the anticipated rise in Chinese demand ahead, especially if the Chinese economy shows any further.
The dollar index, which measures the U.S. unit against a basket of six currencies, declined to 81.131, from 81.278 in North American trade late Friday.
A stronger dollar is a negative for gold and other dollar- denominated commodities, as it makes them more expensive to holders of other currencies.
July silver lost 39.4 cents, or 1.37 percent, to settle at 28. 321 dollars an ounce.
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