Gold remains firm on pessimism after lackluster US jobs data

Gold remained high on Monday trading, traded near $1545 levels, as the bleak job report that followed a parade of downbeat data from the world's no.1 economy revived concerns recovery would falter this year, thereby reinforcing demand on gold as safe haven asset.

US non-farm payrolls slipped sharply to 54,000 in May, the lowest job creation level in eight months, from the revised 232,000 while unemployment roared to 9.1% from 9.0%

In last Friday's session gold added $8.60 or 0.56% after closing at $1541.20 an ounce, while gold price was setin London at $1540.00 per ounce inclining from $1539.39 during the AM fixing.

The shiny metal ended last week on slight gains, taking advantage of concerns spreading in markets stemming from the slowdown in global recovery after the downbeat manufacturing and services data from major economies.

Today, trading in Asia was thin amid the absence of important fundamentals from major econmeis.

The disappointing jobs report benefited gold from two directions; first: it enhanced demand on the metal as safe harbor; second: it pushed the dollar to one month low against a basket of major currencies, therefore increasing the appeal of gold as alternative investment.

With the gloomy data released over the past few weeks, it seems that the Fed would keep interest rate low while will continue the QE2 program that will end this month to support the anemic recovery, where others expect the announcement of third round of stimulus.

As the Fed keeps lose monetary policy, the dollar is expected to face more downside pressure and gold may advance targeting new record highs.

Yet, some of the gains of gold were minimized as hopes that Greece will receive a second bailout by the end of this month or next month absorbed some demand from gold, while the euro rose against all its major counterparts last week.

EU and IMF officials agreed to provide Greece the next installment of its 110-baillout after speculations that the debt-laden economy may not receive the coming installment. Also, Greece mentioned that a review of the country's economic progress came, regarding the Greek 78 billion euros asset sales and austerity measures, came out positive.

Expectations are now in favor of 30-billion-euro stimulus with strict conditions, where investors may have a part in it.

Spot gold is traded at $1544.30 an ounce after reaching a high of $1547.92 and a low of $1540.30, while oil edged down to $99.62 a barrel from the day's starting level of $100.42.

Among other precious metals, sliver ticked down to $36.55 from the day's opening of $36.80, platinum retreated to $1823.00 from $1827.70 and palladium slipped to $784.50 from $786.50, as of 07:40 GMT.