GOLD UPDATE 30.05.2012

Gold fell 1 percent in active trade on Tuesday, as the


euro's slide on worries over Spain's debt prompted

investors to sell the precious metal along with other

dollar-sensitive commodities.

• Bullion rose in early trade and then erased those

gains as the euro tumbled below $1.25 to hit its

lowest in nearly two years after credit agency Egan-

Jones downgraded Spain's sovereign credit rating.

The metal also underperformed crude oil and other

industrial metals such as copper.

• Gold was headed for a monthly decline of nearly 7

percent in May, which would be its fourth straight

monthly decline, the longest stretch since January

2000. It would also be the steepest monthly slide of

2012,

• Technical selling below a key support also

accelerated losses. Bullion's investment appeal

based on economic uncertainty has been more than

offset by the strength in the U.S. dollar and

Treasuries, also viewed as safe havens by investors.

• Investors are worried about Spain's escalating

borrowing costs and weakening banking sector and

Greece's election next month.    (NEAL BHAI 9999974733)

GOLD 30.05.2012

GOLD: (30.05.2012) Sell MCX June Gold between 28975-29010, SL- 29150, Target - 28700/28650/28550  (NEAL 9999974733)

COPPER 30.05.2012

COPPER (30.05.2012) :- Intraday Strategy: Sell MCX Copper June between 430.5-431.75, SL-434.5, Target -426/425/422   (NEAL BHAI 999974733)

GOLD FUNDAMENTALS 30.05.2012

FUNDAMENTALS




Spot gold edged down $1 to $1,553.54 an ounce by 0029 GMT, after sliding more than 1 percent in the previous session.



US gold inched up 0.3 per cent to $1,553.30. * Spanish bond yields rose on Tuesday as investors fretted that efforts to recapitalise the country's frail banking sector could mean the government selling more bonds and adding to the growing pressure on public finances.



Rating agency Egan-Jones cut Spain's credit level for the third time in less than a month, as the country's weak banks continue to worry investors.



Greece's pro-bailout conservatives are leading ahead of a national parliamentary election next month that may determine whether the country remains in the euro zone, an opinion poll showed on Wednesday.



US home prices edged higher for the second month in a row in March as the housing recovery picked up traction, while gains in some of the hardest hit areas suggested the improvement was becoming more broad-based.



Holdings of the iShares Silver Trust, the world's largest silver-backed exchange-traded fund, dropped nearly half a percent from the previous session to 9,619.03 tonnes by May 29, the lowest in nearly two weeks.

GOLD EDGED DOWN 30.05.2012

SINGAPORE: Gold edged down on Wednesday as investors continued to fret about the euro zone debt crisis with Spain's borrowing costs spiralling towards unsustainable levels, keeping the euro close to its lowest level in nearly two years.