Concerns about the integrity of Spanish banks under the specter of the voracious sovereign debt crisis helped pull down gold futures on Tuesday, according to Reuters.
The yellowish metal was tracking the downward drive of the shared currency of the European Union against the strengthening U.S. dollar. Bullion is driving toward monthly losses of 7 percent for May, which would represent the commodity's worst monthly performance thus far this year. Gold also is heading toward a fourth-straight month of losses.
"Whether it's Greece leaving the euro or Spain being next in line for a bailout, investors are focusing on the crisis in Europe at the moment and picking the dollar as their haven of choice," analyst Sun Yonggang with Everbright Futures of China told Bloomberg.
At 1:25 p.m. on Tuesday, gold futures dropped 1.23 percent, a $19.40 decrease to $1,551.80 per troy ounce.
Bloomberg reports the world's reserve currency was hovering about its highest value in 22 months against the embattled euro, largely due to struggles in Spain. Egan-Jones credit agency slashed the nation's sovereign rating, according to Reuters.
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