Gold and Silver Price Update-Bullion Advances on Euro Debt Concern, Slow US Eeconomy

Gold and silver futures registered advances on concerns over the European Debt Crisis and a sluggish US economy. Gold futures advanced by 0.18 percent to USD $ 1526.40 an ounce.

The Euro declined against the US Dollar, after reports suggested that the IMF might not release the next tranche of money to Greece as part of its bailout package keeping in view the deteriorating condition of its economy. Gold also increased as US economy data showed that the US economy had increased by 1.8 percent in the first quarter of this year, lower than the anticipated growth rate. Furthermore, initial claims for jobless benefits increased to 424,000 last week.

Silver futures rose by 1.31 percent to USD $ 37.820 an ounce. Silver volatility has decreased ever since CME Group, the owners of NYMEX, increased the margin required for silver trading by almost 84 percent. Silver continues to increase on the same reasons which have increased the demand of gold as a safe-haven.