By contrast, the value of the shared currency of the European Union travelled the other way as the euro touched its lowest value since January when compared with the U.S. dollar, according to Bloomberg. The dismal performance of the common currency is attributable to the struggles of euro nations' with the sovereign debt scourge.
Bloomberg reports worries are spreading about euro zone officials' inability to merge forces and tackle the debt scourge by expanding options for rescue funds to be used by debt-hobbled nations.
"The dollar's strength is working against gold," head dealer Frank McGhee with Integrated Brokerage Services in Chicago told the news service. "We will continue to see liquidation because of the uncertainty surrounding Europe."
On Monday, gold futures endured the biggest drop in three weeks when losing 2.8 percent of their value.
The globe's top consumer of the yellowish metal, India, is set to reduce its imports of bullion by as much as 16 percent as a consequence of the subcontinent's monetary unit falling to a record low, the Bombay Bullion Association indicates. Indian acquisitions of the precious metal are projected to drop to 800 tons after having soared to 958 tons last year, according to the president of the association.
Tuesday saw the rupee, India's monetary unit, plunge to a record low when held against the U.S. dollar, according to The Hindustan Times. The decline was largely attributable to global investors avoidance of the financially plagued euro for the dollar, all of which spells trouble for Indian administrators.
"No finance minister will find it comfortable when rupee is declining," finance minister Pranab Mukherjee told the top level of India's parliament, according to the Hindustan Times. "We are concerned because we cannot remain insulated from the adverse impact of that."
The minister's concern also touched on problems caused by the debt scourge in Europe as he warned of the crisis' potential impact on one of the globe's larger economic systems.
Three euro zone nations have accepted bailout aid due to the damaging tendencies of the sovereign debt crisis – Portugal, Greece and Ireland. But those economies are not as large as several others that could also be affected.
India's economy is one of the world's four most rapidly developing, which also includes Brazil, Russia and China – also known as the BRIC nations.
"Any amount of bailout package will not be sufficient and worldwide depression will take place" if the debt scourge attacks a larger economic system, the finance minister told the publication.
As of late, gold's performance on the market has been akin to that of a commodity as compared to the safe haven that many consider bullion to be when needing to store wealth during rough economic times, MarketWatch reports.
The time period that the publication pointed to is primarily during the second half of the year. As the sovereign debt scourge deepens and appears more challenging to confront and handle, investors increasingly have abandoned pursuit of the traditional haven and instead driven to the U.S. dollar or Treasurys.
But not all the news coming from Europe is bleak.
The Treasury of Spain, another nation suffering from the duress of the sovereign debt scourge, auctioned more short-term bonds than anticipated, according to MarketWatch. The bailout fund in Europe sold bonds with a strong demand and the nine-month southerly slope of a German economic metric ceased.
One metals analyst said gold might play its hand during the next few trading sessions.
"Gold is at a critical juncture," senior metals analyst Robin Bhar with Credit Agricole told MarketWatch.
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