Monday saw gold futures slumping forcefully as the U.S. dollar gained in the aftermath of disappointing results of last week's European Union summit, Reuters reports.
The one-day dive of bullion is set for the largest drop in three months as the sovereign debt scourge remains alive and damaging since leaders could not place a handle on it last week. But a bright spot to come out of the two-day Brussels meeting is the 27 nations tightening fiscal discipline.
"Now we have broken the $1,675 region, so now the next really important support … is $1,650, that is where it held last time," trading head Afshin Nabavi with MKS Finance told Reuters. "Until the year-end we are probably going to be very choppy and probably trading on the lower side, rather than the higher."
At 10:55 a.m. on Monday, gold futures dropped 2.94 percent, a $50.50 loss to $1,666.30 per troy ounce.
Disappointment is taking hold of markets as a consequence of European leaders not delivering results on efforts to control the debt scourge, according to The Wall Street Journal.
Though gold futures fell to the lowest prices in 14 days, the precious metal remains en route to an 11th consecutive year of annual gains as their value was roughly $1,400 per troy ounce in early January.
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