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.