Gold flat, headed for worst week since early May

Gold flat, headed for worst week since early May

SINGAPORE | Thu Jun 30, 2011 8:50pm EDT

SINGAPORE (Reuters) - Spot gold was flat on Friday, headed for its biggest weekly fall since a commodities rout in early May, as Greece approved austerity measures to secure emergency funding and diminished some safe-haven demand for bullion.

FUNDAMENTALS

* Spot gold was little changed at $1,499.09 an ounce by 0035 GMT, on course for a 2.5-percent weekly loss.

* U.S. gold edged down 0.2 percent to $1,499.70.

* Greece's parliament approved the final austerity measures needed to secure financial aid and avoid a debt default, but longer-term dangers lurk, potentially supporting safe haven demand in gold.

* Gold was the best-performing metal in the second quarter, during which commodities posted the largest quarterly loss since the 2008 financial crisis led by steep sell-offs in grains and oil.

* The U.S. Federal Reserve ended its $600 billion bond purchase program on Thursday, which has helped commodities rally over since late last year, as investors speculate on the possibilities of further stimulus from the central bank.

* The latest U.S. data painted a mixed picture, with factory activity in the Midwest accelerating in June, but initial jobless claims last week higher than expected.

MARKET NEWS

* U.S. stocks ended a volatile quarter on Thursday with their biggest four-day rally since September as positive economic data and a temporary resolution of Greece's debt crisis indicated further gains in July. .N

* The euro took a bit of a breather in Asia on Friday after this week's rally with market focus turning to an upcoming batch of economic data, now that Greece looked set to secure emergency funds and avert imminent bankruptcy.

http://www.reuters.com/article/2011/07/ ... IU20110701