MW: Gold futures fall as U.S. dollar gains against the euro
By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) -- Gold fell on Thursday as the U.S. dollar strengthened against the euro which was hurt by ongoing worries over debt-ridden Greece.
"Gold remains near record (nominal) highs in the beleaguered euro and pound but is lagging in the dollar due to recent dollar strength. The risk of contagion remains and may even have increased -- this is leading to increasing talk of gold becoming an important reserve currency again," wrote analysts at GoldCore in a research note.
Gold futures for June delivery declined $5.50 to $1,143.3 an ounce on the Comex division of the New York Mercantile Exchange.
On Wednesday, the contract rose $9.60 to finish at $1,148.80 an ounce.
The euro dropped Thursday after data indicated Greece's budget deficit is worse than thought, escalating worries that the country's troubles could spread to other nations in the euro zone. Eurostat has reservations on Greek data.
The single currency (CUR_EURUSD 1.3322, -0.0059, -0.4407%) fell to $1.339, from $1.3395 late Wednesday.
The dollar index (DXY 81.36, +0.20, +0.25%) , which measures the U.S. unit against a basket of six other currencies, rose to 81.406, from 81.202 late Wednesday. Dollar gains ground.
The currency moves hit also commodities as well, with crude-oil futures for June delivery falling 66 cents, or 0.8%, to $83.02 a barrel on the Nymex. Oil extends fall.
Economic data to be released includes U.S. weekly jobless claims, producer prices for March and existing home sales.
