Gold falls on higher dollar, Greece uncertainty
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E-mail Xinhua, May 16, 2012
Gold futures on the COMEX division of the New York Mercantile Exchange fell on Tuesday to the lowest level so far this year, as a higher U.S. dollar and continued uncertainty in Greece weighed on the market.
The most active gold contract for June delivery lost 3.9 dollars, or 0.25 percent, to settle at 1,557.1 dollars per ounce.
Gold extended its losing streak to three straight sessions on Tuesday, as the continued rise in the dollar value put significant pressure on the precious metal.
Investors gravitated to the dollar in response to the continued political uncertainty in Greece, obviously viewing the greenback as a safe haven.
News that Greek politicians were still unable to form a coalition government worried the traders, who feared that fresh elections would have to be called in the country next month.
Meanwhile, the U.S. dollar looked set to secure a 12-day winning streak. The ICE dollar index, which measures the greenback against six other major currencies, rose to its highest level since January.
A stronger dollar makes commodities in general more expensive for holders of other currencies.
Silver for July delivery fell 27.3 cents, or 0.96 percent, to settle at 28.353 dollars per ounce.
