By FXEmpire.com

Gold, is on the brink of a bear market, declined for a fourth straight session as concern that Greece will have to leave the euro boosted the dollar and cut the metal’s appeal as an alternative asset. Gold futures for June delivery fell 1.3 percent to settle at $1,536.60. Spot Gold is currently trading at $1548.10. Comex Silver is currently trading at $27.55

The SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, is holding 1,276.60 tonnes as per latest available data on their website.

Japan’s economy expanded faster than estimated in the first quarter, boosted by reconstruction spending that’s poised to fade just as a worsening in Europe’s crisis threatens to curtail export demand. Gross domestic product rose an annualized 4.1 percent from the final three months of 2011, exceeding all but seven of 27 estimates in a Bloomberg News survey of economists, a Cabinet Office report showed today in Tokyo. Singapore also reported a rebound in growth last quarter, while warning about the risk of a disorderly European debt default.

The euro fell to a four-month low against the dollar after the European Central Bank said it will temporarily stop lending to some Greek banks and as the nation’s leaders prepare for a second election. The euro dropped for a fourth day versus the greenback as the ECB said it will push the responsibility for lending onto Greece’s central bank until the banks have sufficiently boosted their capital. The pound fell the most in a month against the dollar. The euro fell 0.1 percent to $1.2716.

Oil rose from the lowest settlement in six months in New York after economic data in Japan and Singapore beat estimates and technical indicators signaled declines in crude prices may be exaggerated. Crude for June delivery rose as much as 57 cents to $93.38 a barrel. WTI Crude Oil is currently trading at $93.29 per barrel.

Although today should be a quiet day eco data wise, the markets are listening closely to news and press from the EU, Greece and Spain will remain in focus. Later in the US session we will get some data, including the monthly Philly Fed Manufacturing Report and Jobless claims, neither are expected to affect the markets.

Markets are expected to remain, negative in the European session as risk aversion continues. The USD and JPY are expected to remain strong, investors looking for a bit more risk may look at the AUD, CAD and the NZD.

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Originally posted here