Gold inched lower on Friday
Gold inched lower on Friday and was headed for a weekly decline of 1 per cent, weighed down by persistent concerns about Spain and lackluster US economic data.
FUNDAMENTALS * Spot gold edged down 0.1 per cent to $1,640.89 an ounce by 0041 GMT, on course for a 1-per cent weekly fall.
* US gold was little changed at $1,642. * Spain managed to reach the sales target at a bond auction on Thursday, but at a cost of rising yields as the country struggles to tame its deficit.
* But economists polled by Reuters said Spain and Italy would not need international bailouts as they battle through their debt crises, although their economic ills may drag the euro zone’s recession into mid-year.
* Investors remained concerned about the euro zone’s fiscal health. Rumors of a potential downgrading of France’s credit rating – later denied – pushed up French debt yields, before the presidential election kicks off on Sunday.
* The latest string of US data raised concerns about the outlook for the world’s top economy. The number of Americans claiming unemployment benefits for the first time fell only slightly last week, factory activity in the Mid-Atlantic region slowed sharply in April while home resales dropped in March.
* Silver fabrication demand should climb 3 to 5 per cent this year as end-users replenish inventories that ran low late last year due to an economic slowdown, but prices are unlikely to test record highs as investor buying may remain subdued, said the head of Thomson Reuters GFMS.
* Spot silver edged down 0.3 per cent to $31.64, headed for a 0.6-per cent weekly rise, its biggest one-week gain in nearly two months. - Reuters
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