Wednesday saw gold futures enter into a bear market after dropping in value for a fourth-straight session and losing 20 percent of its value since establishing record highs eight-plus months ago, Bloomberg reports.
Troubles in Greece and concerns about the Aegean nation remaining among the 17-member euro zone bloc pulled down bullion and the euro while the world's reserve currency advanced. For a 13th consecutive trading day, the U.S. Dollar Index – which gauges the monetary unit's value against six rival monetary units – advanced and touched its top level since January.
"It's difficult to see a turnaround just yet. There will be one, but I don't think this is the time, just when we are in the eye of the storm," analyst Robin Bhar with Societe Generale told Reuters. "Clearly, with people staring into the abyss, it could (fall) $50 or even $100 lower as it washes out. That is the unpredictability of it all and as equities fall, as the Greeks take money out of the banks and the banking sector collapses, I suppose you'd have to be wary of further price falls just to cover for losses in other markets."
At 10:28 a.m. on Wednesday, gold futures declined 0.45 percent, a $7 loss to $1,550.10 per troy ounce.
Since establishing all-time high prices of $1,923.70 per troy ounce on September 7 of last year, gold futures have lost 20 percent of their value, which Bloomberg indicates is descriptive of a bear market.
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