Gold prices fall as Europe worries rattle market

MADRID (MarketWatch) — Gold prices declined on Monday as doubts began creeping into the market about how much last week’s measures by the European Union will do to ease problems in the region, pushing investors into dollars and away from commodities.

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Gold futures for February delivery GC2G -3.15% fell $25.30, or 1.5%, to $1,692 an ounce in electronic trading during the early European trading day.

Gold dropped below the psychologically important $1,700 level in Asian trading.

Analysts at KASB Securities Ltd. said in a note to investors that the first support for gold is at $1,691.28 and the second at $1,699.45. They said that from a technical perspective, gold looks like it’s about to become oversold, suggesting that investors buy on weakness.

The fall in gold prices more than offset the modest gains the metal recorded during the regular session on the Comex division of the New York Mercantile Exchange on Friday.

The U.S. dollar index DXY +1.03% , a measure of the greenback against six major global counterparts, rose to 79.02 from 78.622 in North American trade Friday, weighing on precious metals that are priced in the currency.

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via Gold prices fall as Europe worries rattle market – Metals Stocks – MarketWatch.

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