GOLD NEWS UPDATE 07.06.2012

GOLD NEWS UPDATE 07.06.2012:- Gold rose 1 percent on Wednesday to a one-month


high on growing hopes for a European rescue plan

for Spain's debt-stricken banks, and as signs of a

U.S. economic slowdown fueled speculation of

further monetary easing.

• Silver jumped 4 percent, its biggest one-day rise in

three months, as U.S. equities and industrial

commodities rallied on better economic sentiment

after sources said Germany was warming to the idea

of a face-saving European bailout for Spain's banks,

• Gold is building on a 4.3 percent rally on Friday,

when surprisingly weak U.S. payrolls data reignited

talk of another round of monetary easing. Resurgent

safe-haven bids and talks of more stimulus from

central banks are likely to further boost gold.

• Last Friday's dismal U.S. nonfarm payrolls data has

pressured the Fed to do more to help a slowing U.S.

economy. Atlanta Fed President Dennis Lockhart

said on Wednesday that the U.S. central bank may

need to ease monetary policy further if a wobbly U.S.

economy falters or Europe's crisis triggers a broader

financial shock. (NEAL BHAI 9999974733)