The price of gold fell for the second straight day as the euro’s rally reduced the demand for gold as a safe haven.
The euro rose as much as 1.3% against the dollar after a German court rejected a bid from a lawmaker to block the nation from participating in the eurozone rescue fund.
Gold futures for delivery in August fell 0.6% or $7.70 to $1,222.20 on the Comex. Gold also fell 1.3% yesterday while the euro rose for the third straight day as the ECB kept its main interest rate at 1%, a record low.
During this year, gold has increased by 11% while the euro slumped 15%.
Gold Prices Decline for Second Straight Day as Euro Advances – BusinessWeek