Wednesday saw gold futures drop in value as the common currency of the European Union slumped due to concerns about the widening sovereign debt crisis in the euro zone, according to Reuters.
Yields on government bonds in Italy, the euro zone's third-largest economy, returned to levels higher than 7 percent, the same returns that prompted Ireland, Portugal and Greece to seek bailout aid. Greece is presently waiting on its second bailout since June 2010. Yields on Spanish bonds also have attracted the watchful eye of regional leaders as they struck their highest level in 14 years.
"That tells you that things are not OK," commodity research head Dominic Schnider with UBS Wealth Management in Singapore told Reuters of the Spanish bond returns. "It will give gold some support, although the dollar is putting some pressure."
At 8:01 a.m. on Wednesday, gold futures slipped 0.33 percent, a $5.80 drop to $1,776.40 per troy ounce.
Wednesday also saw the U.S. dollar gain, according to Moneycontrol.com. Gold futures typically lose value when the greenback strengthens and the precious metal gains value when the dollar drops to its rival currencies.
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