<h3>Gold braces for a weekly decline amid euro area tensions and downbeat U.S. data</h3>
By IBT Staff Reporter On
Gold braces for a weekly decline amid euro area tensions and downbeat U.S. data
Gold remains under pressure for the fifth session, heading for a weekly decline, on worries stemming from the euro area and after downbeat U.S. data.Investors focus is still on the tensions from the euro area amid mounting speculations Spain and Italy will eventually ask for international bailouts after the rise in their borrowing cost to unsecured levels this week.Yesterday, Spain sold 1.42 billion euros of 10-year notes with a yield of 5.743% versus 5.338% at an auction on April 4.Earlier this week, Spanish 10-year bond yield rose above 6%, thus coming close to levels which forced some euro area nations, more specifically Greece, Portugal and Ireland, to ask for international bailouts, while Spanish CDS rose to record high.Today, G20 leaders will meet in Washington to discuss tackling debt crisis, where euro area officials will seek global assistance when they conduct talks with the IMF.Also, later in the day, eyes will track German business confidence which is expected to show a drop this month.On the other hand, data released yesterday from the U.S. missed analysts forecast as initial jobless claims for the week ended April 14 soared to 386000 compared with estimates of 370,000. Philadelphia Fed manufacturing index slipped to 8.5 in April, below estimates of 12.0, while existing home sales slipped 2.6% from expectations of recording 0.7%advance.With data getting worse, the Fed may launch Q3 which will push the dollar down and enhance demand on the shiny metal as an inflation hedge.The U.S. dollar retreated against a basket of major currencies as depicted by the dollar index, after facing strong resistance at 76.60, which represents SMA level, where it is currently hovering around 79.55 compared with the day's opening of 79.57.The yellow metal is currently trading around $1642.40 an ounce after finding support for the fourth day at $1640 level which prevented it from declining further. The day's high was recorded at $1645.90 and the low was seen at $1640.45.Probably, the shiny metal is heading for a weekly decline to continue its downside trend that started after touching a peak of $1790.80 on February 29.Crude oil for June's delivery is meanwhile showing a slight rise to trade around $103.10 a barrel after opening today's trades at $103.01.