Gold Declines in London as Central Banks May Increase Sales; Silver Falls

(Bloomberg) -- Gold fell in London on speculation
European central banks will increase sales of the precious
metal. Silver also dropped.

The European Central Bank said yesterday three members of
the Eurosystem of national banks sold 288 million euros ($397
million) of gold last week, equal to about 18 metric tons and up
from 88 million euros the week before. European central banks
may sell 157.6 tons in the next nine weeks, or an average of
about 18 tons a week, according to World Gold Council figures.


Read more at Bloomberg Commodities News

ECB Likely to Keep Rate Unchanged, Consider a Ninth Increase in September

(Bloomberg) -- The European Central Bank will
probably keep interest rates unchanged, preferring to wait for
confirmation that economic growth is fanning inflation before
raising borrowing costs again, a survey of economists shows.

Policy makers meeting in Frankfurt today will keep the
benchmark refinancing rate at 4 percent, according to all 42
economists in a Bloomberg News survey. The bank will raise the
rate to 4.25 percent in September, a separate survey shows.


Read more at Bloomberg Bonds News

US STOCKS-Futures drop on inflation, rate worry

(Reuters) - NEW YORK, June 6 - U.S. stock index futures
indicated a weaker start on Wall Street on Wednesday, on
concern that creeping bond yields will crimp demand for equity
investments.




The European Central Bank raised interest rates by 25 basis
points to 4 percent as expected on Wednesday, which could put
pressure on global bond yields to rise. U.S. stock index
futures held steady well below fair value. Interest-rate
jitters sent stocks lower on Tuesday as higher bond yields pose
competition for stocks.


Read more at Reuters.com Bonds News