Gold futures were dropping on Monday as worries about the deepening sovereign debt crisis pulled down the shared currency of the European Union, according to Bloomberg.
The world's reserve currency pushed to its highest value in 24 months against the 17-nation monetary unit as a consequence of troubles mounting in debt-hobbled Spain. Yields on 10-year Spanish bonds drove to their highest ever. In Greece, the two-time recipient of bailout aid since June 2010, creditors are set to assess progress the Aegean nation has made since meeting bailout targets.
"It's the dollar strength," commodities strategist Marc Ground with Standard Bank in Johannesburg told the news source. "People are definitely worried about Europe. They're relying more on the dollar as a safe haven."
At 10:07 a.m. on Monday, gold futures fell 0.73 percent, an $11.60 loss to $1,571.20 per troy ounce.
Preoccupations are growing ever-larger about Spain eventually requiring a full bailout as its fiscal issues mount, according to Reuters. Spanish media is reporting that regions of the nation are increasingly requesting aid from the government for dire financial situations.
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