SF: Gold Futures Fluctuate After Euro Pares Loss Against Dollar
June 7 (Bloomberg) -- Gold futures fluctuated on speculation that the euro's decline will stall, eroding demand for the precious metal as a hedge against the currency's slump.
The euro pared losses against the dollar after falling to the lowest level since March 2006. Gold surged to a record last month on demand for a haven amid Europe's sovereign-debt crisis.
"If you start to see the euro stabilize, there's no flight-to-quality need to own gold," said Matt Zeman, a metals trader at LaSalle Futures Group in Chicago.
Gold futures for delivery in August dropped $1.30 to $1,216.40 an ounce at 9:56 a.m. on the Comex in New York. The price dropped as much as 0.5 percent and gained as much as 0.4 percent.
The euro rebounded after German factory orders unexpectedly jumped, signaling that Europe's economy may weather its debt woes.
Gold reached an all-time high of $1,249.70 on May 14 and has outperformed equities, bonds and most commodities this year on demand for a store of value.
Silver futures for July delivery rose 6.6 cents, or 0.4 percent, to $17.365 an ounce.
Platinum futures for July delivery fell $21.80, or 1.4 percent, to $1,503.50 an ounce on the New York Mercantile Exchange.
Palladium futures for September delivery declined $5.35, or 1.2 percent, to $425.65 an ounce.
