Gold continues to decline as EU summit approaches

Gold prices continued to drop on June 27, as market participants including precious metals buyers looked ahead to the coming European Union summit.

August gold was 0.2 percent lower at $1,571 an ounce by 7:57 a.m. on the Comex division of the New York Mercantile Exchange, according to Bloomberg News. Bullion for immediate delivery was down 0.1 percent at $1,570.63 in London.

The metal has plunged 6 percent during the second quarter, which has brought its annual increase to 0.3 percent., the media outlet reports.

By 07:41 EDT, spot gold was trading 0.3 percent lower at $1,566.70 an ounce while August Comex gold was down $7.60 per ounce at $1,567.30, according to Reuters.

Bloomberg News reports that the euro had not fluctuated significantly against the U.S. dollar, but yields rose at an auction of Italian bonds. "It’s clear that the metal is now more concentrated towards the European issues," analysts at Hyderabad, India-based Karvy Comtrade wrote today in a report, according to Bloomberg News. "The euro therefore seems to remain under substantial threat. Gold is therefore likely to remain under pressure." 

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