Monday saw gold futures backtrack beyond the milestone price of $1,700 per troy ounce as investors' interests oriented toward the U.S. dollar while euro zone officials continued struggling with the sovereign debt scourge, MarketWatch reports.
Italian and Spanish borrowing expenses stayed high as European stock markets suffered losses while officials attempted to stave off additional nations in the region needing bailouts. Debt concerns in the U.S. also became prominent as political leaders acknowledged an inability to cut the deficit.
"After a relatively stable Asian trading session, precious metals, along with the rest of the commodities complex, have come under selling pressure this morning," states a note authored by analyst Marc Ground with Standard Bank, according to Dow Jones Newswires. The great unknown in the euro zone "is keeping the dollar relatively strong."
At 11:10 a.m. on Monday, gold futures fell 1.88 percent, a $32.40 fall to $1,692.70 per troy ounce.
As the value of the U.S. dollar increases, gold futures tend to drop and vice versa since the two typically perform the inverse of one another.
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