Gold Drops to 1-Week Low as Europe Woes Erode Demand for Metal
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Gold futures fell to the lowest price in more than a week as concern that Europe’s debt crisis is deepening boosted the dollar and curbed demand for the metal as an alternative investment.
The dollar rose to a two-year high against the euro as the cost of insuring against default on Spanish government debt climbed to a record. Greece’s creditors meet this week amid doubts that the country will meet its bailout commitments. German Vice Chancellor Philipp Roesler said he’s “very skeptical” that European leaders will be able to rescue Greece.