LONDON Nov 1 (Reuters) - Gold extended losses on Tuesday, in line with a lurch lower in the euro, which fell against the dollar to a three-week low after Greece shocked markets with a call for a referendum on its international bailout package, while euro zone money market stress worsened for a third straight day.
The spot gold price fell by as much as 1.6 percent to a session low of $1,686.20 an ounce before trading at $1,691.00, marking a 1.3 percent drop on the day by 1210 GMT. A stronger dollar tends to undermine gold as it makes it more profitable for non-U.S. investors to sell it.
The euro fell to an intraday low of $1.3648, while the spread between three-month euro LIBOR rates and overnight indexed swap rates -- a measure of funding stress -- staged its largest one-day increase since mid-September, rising for a third day to a six-week high of 79 basis points, while European equities fell by more than 3.5 percent .
