Thursday, December 29, 2011

Gold near 6-month low after Italy auction

Gold dropped to its lowest in almost 6-months on Thursday as the euro fell against the dollar after an Italian bond auction saw yields at an unsustainable level and renewed euro zone fears and credit tightness worries.

The latest cause of concern was Italy, which had to pay nearly 7 percent to borrow at a 10-year bond auction, a level seen as still uncomfortably high for a country with such a high debt burden and facing slow growth. A stronger U.S. unit makes dollar-priced commodities such as precious metals costlier for holders of other currencies.

[ via Reuters ] 29 Dec


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