Gold futures ebbed and flowed on Tuesday, pulled down by losses to the embattled currency of the euro zone yet tempered by the aftermath of the U.S. Federal Reserve committing to leniency with its monetary policy, according to Reuters.
The shared currency of the European Union's challenge on Tuesday is the ongoing dilemma in Greece, which is waiting on delivery of its second tranche of international bailout aid. The prospect of the Aegean nation's inability to secure the equivalent of $170 billion in aid is chilling markets as the country runs the risk of defaulting on its obligations.
"Any deal to implement further austerity (will be) difficult, especially with a 24-hour strike starting today as workers protest at new austerity measures," analyst Michael Hewson with CMC Markets told the news source. "Politicians have one eye on a general election due in April. No one in Greece wants to be seen to be tightening the austerity noose even tighter for fear of being punished at the polls."
At 8:29 a.m. on Tuesday, gold futures dropped 0.37 percent, a $6.30 drop to $1,718.60 per troy ounce.
The Associated Press reports Greece's struggle with debt is pulling down world stock markets and is threatening to develop into a more serious financial crisis.
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