MCX Gold tracked the euro lower on Friday en route to its weakest monthly performance since December, pushed down by fears the debt crisis in Europe could spiral out of control and trigger a global economic slowdown. More information about free mcx tips visit my site

Even though traditionally seen as a safe haven, MCX gold has borne the brunt of the sell-offs across risk assets such as equities, industrial metals and oil, forcing investors and speculators to sell bullion to cover losses in other markets.

"I think MCX gold will continue tracking the euro for the moment and ignoring its own fundamentals as macro sentiments overwhelms investors," said Lynette Tan, an analyst with Phillip Futures in Singapore.

"It is also weighed down by dollar strength and we see any positive economic or employment data from the US as pressuring gold. For the moment, I am downside biased for MCX gold with support at USD 1,521 levels and the psychological USD 1,600 as key resistance."

Dealers are awaiting the release of US Commodity Futures Trading Commission data later in the day for clues on investors' interest after net "long" managed money in US MCX gold - which reflects bullish bets on bullion - fell by USD 2.2 billion to USD 12.2 billion for the week ended May 16.

The CME Group , the world's largest commodities exchange, on Thursday cut margins for trading gold, crude oil, RBOB gasoline and lean hog contracts, with effect from the close of business on May 29. Margins for trading gold have been lowered by about 21% this year.

A Greek exit from the euro zone would set off a "chain reaction of uncertainty" that would be strongly felt in Britain's banking sector, British Deputy Prime Minister Nick Clegg said.

Both bullion and currency dealers were likely to refrain from taking too substantial positions ahead of a holiday-lengthened weekend in the United States, which observes Memorial Day on Monday.

"The euro was a bad idea with the best intentions, and now the sensible course for all involved is to cut their losses and return to the sanity of national currencies," said Peter Morici, an economist at the University of Maryland.

"The euro has failed, and the time has long passed for Greece to bail out. Sooner or later, Spain, Portugal and perhaps Italy and Ireland, will have to follow, but after the world does not end with Greek withdrawal, those would be easier and less painful decisions to manage."

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