Gold inches up on frightening US outlook and Greek debt concerns

Gold remained high on Tuesday trading, traded near $1545 levels, as lack of important fundamentals from major global economies kept the effect of the bleak US jobs report and returned focus on the Greek debt woes.

Still, the impact of the grim US jobs report is represented in market, causing decline in stocks and pushing investor's towards heavens such as gold.

Last week, 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%. The vile report followed a wave of disappointing data from the US, thereby increasing speculations the Fed would keep interest rate low and may extend QE2 beyond June to boost recovery.

Later in the day, Fed Chairman, Ben Bernanke, will deliver a speech that will reveal the outlook of the economy.

In the previous session, gold added $5.30 or 0.34% after closing at $1533.37 an ounce, while gold price was setin London at $1539.50 per ounce declining from $1540.75 during the AM fixing.

The shiny metal also benefited from the downside pressures on the dollar which pulled it down to one-month low against a basket of major currencies as depicted by the dollar index which fell today to a low of 73.69 after opening at 73.96.

Also, gold is taking advantage of the vivid slowdown in global recovery, especially after the ease in manufacturing and services expansion in major global economies, as indicated by last week's data.

Moreover, once again the main focus returned to Greece which is preparing to receive a second bailout from the EU and IMF where the Greek Prime Minister accepted to adopt asset sales and austerity measures to get the second aid package and the next installment of the 110-billion euro aid.

Greece mentioned that a review of the country's economic progress came out positive, while the ECB President gave the green light to investors to purchase new Greek bonds to replace maturing securities as the new aid package that will probably be approved by the end of the current month will include participation from private investors.

German Chancellor Angel Merkel told President Obama that the euro area will surpass the current debt crisis, giving further support to the common European currency which climbed to one month high.

Spot gold is traded at $1545.50 an ounce after reaching a high of $1546.42 and a low of $1542.30., while oil inched up to $98.85 a barrel from the day's starting level of $98.75.

Among other precious metals, sliver edged up to $39.98 from the day's opening of $36.70, platinum rose to $1814.70 from $1807.80 and palladium surged to $793.00 from $784.80, as of 07:50 GMT.