Gold futures fell the most in two weeks as the euro’s rebound against the dollar reduced demand for the precious metal as a haven against European debt concerns.
The euro was little changed after topping $1.30 U.S. for the first time since May 10. Gold rose to a record $1,266.50 U.S. an ounce on June 21 and surged to all-time highs in euros, U.K. pounds and Swiss francs last month amid Europe’s fiscal crisis.
Gold futures for August delivery fell $15.70 U.S., or 1.3%, to $1,192.60 U.S. on the Comex in New York. A close at that price would mark the biggest drop for a most- active contract since July 1. Before today, the metal had gained 10% this year.
The euro headed for the third straight weekly gain. Gold traditionally moves in tandem with the euro as an alternative to the dollar. This year, as Europe’s sovereign-debt woes unfolded, investors sold euros and bought gold and dollars as stores of value.
Precious metals with wider industrial applications fell on speculation the U.S. economic recovery will slow, eroding demand for raw materials.
Silver futures for September delivery fell 51.7 cents U.S., or 2.8%, to $17.845 U.S. an ounce on the Comex.
Platinum futures for October delivery dropped $15.70 U.S., or 1%, to $1,518 U.S. an ounce on the New York Mercantile Exchange.
Palladium futures for September delivery declined $13.70, or 2.9%, to $453.50 U.S. an ounce.
Copper prices dropped as much as 2.7%. Energy futures also declined. The Reuters/Jefferies CRB Index of 19 raw materials fell as much as 0.9%.
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