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Gold Drops From Five-Week High Amid Renewed Europe Debt Concern

Gold declined from a five-week high on renewed concerns that Europe’s debt crisis will hamper global growth, damping prospects for commodity demand.

Italy’s borrowing costs rose to a euro-era record at a sale of three-year bonds. The Standard & Poor’s GSCI Index of 24 raw materials slumped as much as 1.3 percent. A rebound in the dollar also reduced demand for gold as an alternative asset.