By Sara Sjolin, MarketWatch
LONDON (MarketWatch) — Gold prices declined Thursday, as new worries over Greece’s second bailout added pressure to the euro, but spurred moves higher for the dollar.
Gold futures for April delivery GCJ2 -1.18% fell $10.90, or 0.6%, to $1,717.10 an ounce, erasing a 0.6% gain from Wednesday.
The gold price was pushed lower Thursday as the dollar index DXY +0.42% , which measures the greenback against a basket of six rival currencies, added 0.5% to 80.07. That move came as a possible delay for a Greek bailout package pushed investors out of the euro currency.
Commodities traded in the U.S. currency, such as gold, tend to drop on the back of a stronger dollar, as they get more expensive for investors holding other currencies.
The uncertainty over Greece’s future in the euro zone remained high after EU officials Wednesday reportedly raised the prospect of delaying the country’s next tranche of aid until after expected elections in April.
Fears over a potential delay knocked European stocks. The Stoxx Europe 600 index XX:SXXP -0.65% was off 0.8% in midday trade.
The decline in gold and equities also fuelled a selloff in other metals.
Silver futures for March delivery SIH2 -1.83% lost 24 cents, or 0.7%, to $33.16 an ounce and copper for the same month HGH2 -1.82% shed 6 cents, or 1.7%, to $3.74 a pound.
