BLBG; Gold Falls, Silver Drops Most in Four Weeks as Dollar Gains on Greek Woes
Gold fell and silver dropped the most in four weeks as the dollar headed for the longest rally in five months against the euro, eroding demand for the precious metals as alternative investments.
The euro declined against the greenback for the fifth straight session, the longest slump since early September. Europe’s creditor countries are seeking more control over how aid to Greece is spent as the nation faces a possible default.
“The dollar’s strength is acting against gold,” Adam Klopfenstein, a market strategist at Archer Financial Services Inc. in Chicago, said in a telephone interview.
Gold futures for April delivery fell 0.6 percent to $1,716.70 an ounce at 10:22 a.m. on the Comex in New York, heading for the fourth decline in five sessions.
Before today, the commodity gained 10 percent this year.
“From a technical perspective, gold has been well supported on any dips toward $1,700,” Saeed Amen, an analyst at Nomura International Plc in London, said in an e-mail. “The tail-risk effect related to the Greece situation should also act as some support.”
Silver futures for March delivery fell 1.7 percent to $32.80 an ounce. A close at that price would mark the biggest drop for a most-active contract since Jan. 13.
To contact the reporters on this story: Maria Kolesnikova in London at mkolesnikova@bloomberg.net; Debarati Roy in New York at droy5@bloomberg.net
