Rising dollar and Greek woes cause precious metals buyers to push gold lower
A stronger dollar and more problems related to the Greek debt dilemma caused precious metals buyers to push gold lower on February 16.
April gold futures were trading down 0.6 percent at $1,716.70 per ounce at 10:22 a.m. on the Comex division of the New York Mercantile Exchange, Bloomberg reports. February futures for the precious metal were trading $10.70 lower at $1,717.40 an ounce, according to Reuters. Spot gold was down 0.7 percent at $1,715.59 an ounce at 12:32 GMT.
The inability of euro zone finance ministers to arrive at an agreement related to a 130 billion euro bailout caused the euro to drop 0.7 percent against the greenback, the media outlet reports. This was the fifth trading session in a row where the common currency depreciated.
"Gold stopped being a safe-haven store of value some time around August or September, when you had a huge spike in prices, followed by a collapse," Natixis analyst Nic Brown told the media outlet. "Gold price volatility was as high as some of the other financial assets you might have been trying to get away from."
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