(RTTNews) - Gold was extending losses for a third session Wednesday morning amid a weak euro as traders were skeptical about the outcome of European Union meeting later during the day.
The informal European leaders summit is scheduled to discuss growth-boosting proposals and the idea of a joint euro-zone bond.
Gold for June delivery, the most actively traded contract, lost $18.40 to $1,558.20 an ounce. Yesterday, gold extended losses for a second session, as the dollar strengthened and investor concerns persisted on the euro zone debt crisis with continued focus on Greece and the Spanish banks. Adding to concerns were the Organization for Economic Cooperation and Development's warning that the euro zone crisis could derail the global economy.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, moved down to 1,265.43 tons from 1,282.94 tons.
This morning, the U.S. dollar was moving up toward a two-year high versus the euro and trading around its two-month high against sterling. The buck was moving lower against the yen and ticking higher versus the Swiss franc.
In economic news from the euro zone, retail sales in the U.K. declined at the fastest pace in two years as April's wettest weather on record damped consumer spending, the latest official figures revealed. The Office for National Statistics said that retail sales volume, including automotive fuel, dropped 2.3 percent from a month ago, much faster than the 0.8 percent decrease forecast by economists. This was the biggest drop since January 2010 and followed a revised 2 percent growth in March.
Elsewhere, the prices of silver and platinum were moving lower in morning deals.
From the U.S., the Commerce Department will release its new home sales report for April at 10 am ET. The consensus estimate calls for new homes sales of 335,000 compared to the 328,000 reported for March.
Later during the session, the Federal House Finance Agency is set to release its house price index for March. Economists expect a 0.3 percent month-over-month increase in the house price index, the same pace as in the previous month.
