Gold rebounds, but on track for weekly loss

Gold prices rose back above $1,565 an ounce yesterday, snapping four sessions of losses and temporarily decoupling from the euro, as investors saw the precious metal's current price as a buying opportunity after its recent fall. Spot gold was up 0.5 per cent at $1,565.61 an ounce at 1338 GMT, having fallen towards $1,530 earlier last week as worries that Greece could be set to exit the Eurozone hurt the euro and boosted interest in the dollar as a haven from risk. It remained on track for a 1.9 per cent loss last week. "The $1,540 level held intact yet again earlier this week, and even though there is no overwhelming physical support, or indeed investor interest, these levels are starting to look attractive, with some modest buying on the lows," VTB Capital analyst Andrey Kryuchenkov said. Precious metals dealers are awaiting US Commodity Futures Trading Commission data for clues on investors' interest after net "long" managed money in US gold — which reflects bullish bets on bullion — fell by $2.2 billion to $12.2 billion for the week ended May 15. Physical gold buying interest in main gold consumer India remained light on Friday, while gold bar premiums in Hong Kong and Singapore were steady from last week as market participants wait for progress in the Eurozone's struggle. But premiums of gold bars in Tokyo rose to as much as $1.50 an ounce above London prices on Friday, the highest level since last March, as investors turned from sellers to buyers during a recent price downturn, dealers said. CME Group Inc, the world's largest commodities exchange, on Thursday cut margins for trading gold and some other contracts, with effect from the close of business on May 29.