Daily Gold Update

Source: Marketwatch

San Francisco— Gold inched lower Thursday as it struggled to trade in the black after two days of solid gains and after some uncertainty about the euro zone was lifted. Gold for August delivery declined $7.60, or 0.5%, to $1,502.80 an ounce on the Comex division of the New York Mercantile Exchange. Gold has gained 4.4% on the quarter. So far this month, bullion has declined 2.2%. Gold had gained 1.3% in the first quarter, buoyed by the beginnings of uprisings in several North African and Middle Eastern countries and the uncertainties then, as now, surrounding Greece�s sovereign-debt crisis.

Gold gained in the last two sessions as commodities in general caught a lift from heightened hopes for the global economy after Greece took steps toward another tranche of financial aid and approved an austerity plan. Greek lawmakers on Wednesday and Thursday passed legislation to implement the plan, which includes privatizations and selling of assets. While the Greek vote isn�t supportive of gold, which thrives on uncertainties and bad economic news, other market forces have worked to keep prices supported, such as worries about elevated inflation, said Dan Smith, a metals analyst with Standard Chartered Bank in London. �We see a lot of confusion about the Greek situation. The whole situation in Europe is distorted,� he said. �There has been some safe-haven buying because of Greece and it�s coming out of the market now … But the long-term story is still bullish for gold.� See full story.