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Gold futures hover close to 3-week high on U.S., Greece worries

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Forex Pros - Gold futures eased off a three-week in holiday-thinned trade on Monday, but losses were limited as concerns over the pace of the U.S. economic recovery and unresolved Greek sovereign debt issues supported prices.

On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,535.75 a troy ounce during late Asian trade, easing down 0.1%.

It earlier fell to a daily low of USD1,535.15 a troy ounce.

Data on Friday showed that pending home sales in the U.S. plunged in April, while a separate report showed that consumer spending rose less-than-expected last month.

The downbeat data diminished expectations for an imminent tightening in U.S. monetary policy, boosting the appeal of gold and other precious metals.

Meanwhile, the leader of Greece's main opposition party, Antonis Samaras rejected new austerity measures proposed by Greek Prime Minister George Papandreou on Friday, saying his party wouldn't be blackmailed.

Riots spread throughout Athens on Sunday, as protesters denounced the government and the International Monetary Fund, amid talks that the debt-stricken nation may restructure its debt.

Investors often buy gold and silver as refuges against economic and political uncertainty.

Elsewhere, China National Gold Corporation, the state-owned company that controls the nation's largest gold deposits said that it planned to invest in gold mines in Africa, as it expected prices to "fluctuate at historically high levels for another three years."

Silver for July delivery shed 0.45% to trade at USD37.81 a troy ounce during late Asian trade, while copper for July delivery slumped 0.88% to trade at USD4.144 a pound.

Also Monday, liquidity was relatively thin as U.K. markets were to stay closed for the Spring Bank Holiday and U.S. markets for Memorial Day.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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