Gold Eases As Investors Digest Europe's Elections: report


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Gold eased on Monday in very thin trade, pressured by weaker crude oil prices and a lack of safe-haven demand as investors digested what elections in Europe will mean for the region's debilitating debt crisis, Reuters reported.

It said bullion was dragged down by oil and the euro's tumble after election results in France and Greece reflected strong anti-austerity sentiment, renewing European sovereign debt fears and anxiety about anemic economic growth and petroleum demand.

However, the metal, which largely followed the performance in riskier assets so far this year, stayed lower even though the single currency, oil and equities recovered from early session lows, it added.

Trading volume was very low in U.S. gold futures after a strong run of U.S. economic data and fading hopes of further monetary easing by the Federal Reserve prompted some investors to reduce their bullish position.

Spot gold was down 0.3% at US$1,636.80 an ounce by 2.13 p.m. EDT (1813 GMT), recouping early losses after hitting a session low at US$1,632.98.

U.S. gold futures for June delivery settled down US$6.10 an ounce at Us$1,639.10, with trading volume about 40% below its 30-day average, preliminary Reuters data showed.

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This article appears in: Investing , Commodities

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