SINGAPORE, May 29 (Reuters) – Gold inched down on Tuesday,
after attempts to breach the resistance at $1,580 an ounce
stalled as Spain’s deepening crisis rekindled worries about euro
zone finances, sending the single currency to near its two-year
low against the dollar.
FUNDAMENTALS
* Spot gold had edged down 0.1 percent to $1,571.04
an ounce by 0037 GMT, retreating from a one-week high of
$1,583.50 hit the previous session.
* U.S. gold gained 0.1 percent to $1,570.90.
* Spanish 10-year borrowing costs neared the 7 percent
danger level and Bankia shares hit record lows on Monday after
the government, struggling to sort out its finances, proposed
putting sovereign debt into the struggling
lender.
* The risk premium on Spanish government debt over German
Bund hit a euro-era high on Monday, and looked set to keep
rising as investors factored in the growing cost of shoring up
the country’s banking sector.
* Industrial and Commercial Bank of China Ltd is
seeking membership of overseas exchanges and aims to become a
major global bullion market maker, a senior executive said on
Monday.
* Potentially supportive of platinum group metals demand,
China may soon resume paying subsidies to rural residents who
trade in old vehicles for new, fuel efficient ones in an effort
to rekindle demand amid a slowdown in the world’s largest auto
market.
* Current platinum prices could endanger investment plans to
allow platinum miner Lonmin to ramp up production at key
shafts and slash unit costs, the chief executive of the world’s
third-largest producer of the precious metal said.
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MARKET NEWS
* The euro wobbled near a two-year low against the dollar on
Tuesday as concerns about the cost of shoring up the Spanish
banking system pushed up Spanish debt yields, offsetting a
slight easing in worries about Greece.
* Oil held steady on Tuesday, after rising for three
sessions straight as Middle East oil supply worries resurfaced
after minimal progress in talks over Iran’s nuclear programme
and fears of a euro zone break-up receded.
DATA/EVENTS
1230 U.S. Chicago Fed Midwest Manufacturing Index April
1300 U.S. CaseShiller 20 mm nsa Mar
1300 U.S. CaseShiller 20 yy Mar
1400 U.S. Consumer confidence May
1430 U.S. Dallas Fed Texas Manufacturing Index May
Germany CPI preliminary May
PRICES
Precious metals prices 0037 GMT
Metal Last Change Pct chg YTD pct chg Volume
Spot Gold 1571.04 -1.74 -0.11 0.46
Spot Silver 28.35 -0.05 -0.18 2.38
Spot Platinum 1428.49 -3.56 -0.25 2.55
Spot Palladium 599.97 -1.85 -0.31 -8.05
COMEX GOLD JUN2 1570.90 2.00 +0.13 0.26 60950
COMEX SILVER JUL2 28.28 -0.11 -0.39 1.29 10691
Euro/Dollar 1.2521
Dollar/Yen 79.58
COMEX gold and silver contracts show the most active months
(Reporting by Rujun Shen; Editing by Nick Macfie)
