Gold Declines for Second Day as European Crisis Bolsters Dollar
The euro fell below $1.21 for a second day after Moody’s Investors Service yesterday lowered the credit-rating outlook for Germany, the Netherlands and Luxembourg. The Standard & Poor’s GSCI Spot Index of 24 commodities fell for a third session. The dollar jumped 3.3 percent against a basket of currencies in the second quarter while gold declined 4 percent.
“The precious metals are on offer once again this morning as the euro trades either side of $1.21 after Moody’s revised its outlook,” Tim Gardiner, managing director at TD Securities Inc., wrote today in a report.
Gold futures for August delivery fell 0.1 percent to settle at $1,576.20 an ounce at 1:50 p.m. on the Comex in New York, extending this month’s loss to 1.7 percent.
Silver futures for September delivery slid 0.9 percent to $26.811 an ounce on the Comex.
On the New York Mercantile Exchange, platinum futures for October delivery fell 0.9 percent to $1,386.60 an ounce. Palladium futures for September delivery declined 1.6 percent to $561.60 an ounce, the biggest drop since July 5.
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