SHANGHAI, May 8 (SMM) -- COMEX gold futures for delivery in July opened at USD 1,638.1/oz and closed at USD 1,639.1/oz on May 7, down USD 6.1/oz or 0.37% from the previous trading day. Highest and lowest prices during the day were USD 1,642.6/oz and USD 1,634.4/oz.
COMEX silver futures for July delivery opened at USD 30.2/oz and closed at USD 30.1/oz, down USD 0.33/oz or 1.09% from the previous trading day. Highest and lowest prices during the day were USD 30.4/oz and USD 29.8/oz.
Euro zone is facing uncertainty. The French election ended with Hollande becoming the new president. Hollande is against Greek style austerity plans in France and is less firmed than Sarkozy in cutting deficit. His position after taking office may hurt European debt crisis control as well as the relationship between France and Germany. In Greece, its Social Democratic and Social Movement parties failed to win enough votes to form a coalition, that will likely lead to turmoil in the financial markets, triggering fears that Greece is not willing to pursue austerity policies. These austerity measures are the precondition of Greek aid. Market worries about European debt crisis once again are heating up. The euro weakened. Risk aversion in the market drove up the US dollar index, which, coupled with political instability in the euro zone, pressed gold prices down. Gold and silver prices are expected to remain volatile today.