The price of gold was firm near its two-week high Friday morning as traders focus on the weekend Greek elections.
Gold for August delivery, the most actively traded contract, added $6.60 to $1,626.20 an ounce. Yesterday, gold extended gains for a fifth session on investor hopes of further quantitative easing after some weak initial jobless claims data from the U.S. and the record highs at the Spanish and Italian bond auctions. Market sentiments continued to be focused on the euro zone with the upcoming Greek elections on Sunday and lingering contagion fears with unconfirmed reports that Cyprus too would join the bailout bandwagon.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, moved up to 1,277.39 tons from 1,274.37 tons.
This morning, the U.S. dollar hovering around its two-year high versus the euro and trading near a two-week low against sterling. The buck was moving lower versus the yen, while ticking higher against the Swiss franc.
In economic news, the euro area trade surplus fell to EUR 5.2 billion in April from EUR 7.5 billion in March, Eurostat said. In April 2011, the trade balance showed a deficit of EUR 4.5 billion. Meanwhile, seasonally adjusted trade surplus increased to EUR 6.2 billion in April from EUR 3.7 billion in the previous month.
Meanwhile, data from the Office for National Statistics showed that the U.K. visible trade deficit increased to a seasonally adjusted GBP 10.1 billion in April from GBP 8.7 billion in March. The deficit was well above the consensus forecast of GBP 8.5 billion.
Elsewhere, the prices of silver and platinum were moving higher in morning deals.
From the U.S., the results of the New York Federal Reserve's empire state manufacturing survey is slated to be released at 8:30 am ET. The headline general business conditions index for June is expected to come in at 13.8 compared to 17.09 in May.
by RTT Staff Writer
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