LONDON: Gold today declined for a second day on speculation that Europe's debt crisis will bolster the dollar and cut demand for the metal as an alternative investment.
Gold fell 0.1 per cent to $ 1,574.85 an ounce. Prices are up 0.7 per cent this year. Silver also declined 0.2 per cent to $ 26.97 an ounce.
The euro was little changed near a two-year low versus the dollar after Spanish and Italian bond yields jumped yesterday and Moody's Investors Service cut its ratings outlook for Germany and the Netherlands.
Moody's said the increasing likelihood of collective support for European countries including Spain and Italy is "adversely" affecting the Aaa credit ratings of Germany and the Netherlands.
Greece's creditors arrive in Athens today amid doubts that the nation will meet commitments attached to bailout funding.
