LONDON (MarketWatch) — Gold futures fell Monday as the euro retreated on fears of rising energy costs and finance ministers from the Group of 20 nations over the weekend demanded the currency bloc to boost its firewall to contain its debt crisis.
Gold for April delivery GCJ2 -0.29% lost $8.70, or 0.5%, to 1,767.70 an ounce, extending losses from Friday. On Thursday last week, gold settled at its highest level since Nov. 11, supported by a lower U.S. dollar.
Silver for March delivery SIH2 -0.08% shed 21 cents, or 0.6%, to $35.13 an ounce.
Metal prices were weighed down by a decline in the euro as investors were concerned that recent rallies in oil prices could hurt global growth. Oil futures for April delivery CLJ2 -0.90% reached last week the highest level since May on geopolitical concerns, but were Monday 1.1% lower at $108.55 a barrel.
The euro decline gave way to a stronger dollar and the ICE dollar index DXY +0.25% which measures the greenback against a basket of six other currencies, added 0.2% to 78.546. Commodities traded in the U.S. currency tend to fall on the back of a stronger dollar.
The euro was further pushed lower after the G-20 over the weekend said it would back increased funding for the IMF only after the euro-zone provides a boost to the firepower of its rescue fund.
High grade copper for March delivery HGH2 -0.63% was off 0.6% at $3.82 a pound.
Source; http://www.marketwatch.com/story/gold-silver-pull-back-as-euro-retreats-2012-02-27
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