Gold falls below $1,690/oz after the slide of Euro

Gold prices fell more than 1 percent in Europe on Tuesday, pushing through support at $1,690 an ounce, as jitters over whether private creditors will agree to a Greek bond swap deal and wider euro zone growth pressured the euro versus the dollar.

Platinum, palladium and silver were all caught up in the selling, falling more than 2 percent in gold’s wake.

Spot gold was down 1.1 percent at $1,687.86 an ounce at 1141 GMT, while U.S. gold futures for April delivery were down $15.20 an ounce at $1,688.70.

The metal slipped to session lows as the dollar rose to a 2-1/2 week high against the euro, with the single currency pressured by concerns about a Greek debt swap deal. Traders cited steady selling by macro funds.

Stock markets fell and the cost of insuring Greek, Spanish and Italian government debt against default rose on uncertainty over Greece’s debt restructuring and a worsening economic outlook, while safe-haven German Bunds rose, as Reuters stated.

Gold has recently failed to benefit from the safe-haven flows that helped push it to record highs last year as investors seek the safety of the dollar instead.

The precious metal is extending losses after falling nearly 4% last week, the most since mid-December, after Federal Reserve chair Ben Bernanke disappointed financial markets when he failed to signal another imminent round of monetary easing.


Leave a comment