Gold Falls to Lowest Settlement in Seven Weeks as Euro Gains
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Gold fell in New York to the lowest settlement price in seven weeks on speculation that European Union leaders will stabilize the region’s economy, eroding the appeal of the metal as a haven.
The euro was headed for the biggest weekly gain against the dollar since May 2009. German Chancellor Angela Merkel said this week she would do “whatever is needed to support the euro.” European Central Bank President Jean-Claude Trichet said yesterday he may increase interest rates to control inflation. Gold gained 30 percent last year as the ECB and the International Monetary Fund bailed out Greece and Ireland.