Gold futures dropped for a second day in New York on speculation that Europe’s debt crisis will bolster the dollar and cut demand for the metal as an alternative investment. Silver also retreated.
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.