SF: Gold Declines in N.Y. as European Leaders Pledge to Save Greece
June 24 (Bloomberg) -- Gold fell for a second day in New York as a pledge by European Union leaders to stabilize the region's economy cut demand for the precious metal as a haven.
EU leaders vowed to stave off a Greek default as long as Prime Minister George Papandreou pushes through a package of budget cuts next week. The dollar gained against the euro and headed for a third weekly advance. Gold, which typically moves counter to the greenback, slid 2.1 percent yesterday as slumping oil prices drove commodities lower.
"A stronger dollar is normally negative for gold," said Peter Fertig, the owner of Quantitative Commodity Research Ltd. in Hainburg, Germany. "There is temporarily less urge to buy gold as a safe haven."
Gold futures for August delivery fell $4.90, or 0.3 percent, to $1,515.60 an ounce on the Comex at 9:51 a.m. in New York. Before today, the metal declined 1.2 percent this week.
"We are seeing some signs of fatigue here, and it should be quiet for the rest of the day," said Matthew Zeman, a strategist at Kingsview Financial in Chicago. "The long-term fundamentals remain intact."
Before today, the precious metal gained 7 percent in 2011, heading for an 11th straight annual gain. Futures reached a record $1,577.40 on May 2 as Greece's debt crisis and record-low U.S. borrowing costs boosted demand for an alternative to currencies.
--With assistance from Madelene Pearson in Mumbai and Phoebe Sedgman in Wellington. Editors: Millie Munshi, Steve Stroth
