Gold fell on Thursday after the U.S. dollar hit a three-week high against the euro as concern escalated over the impact of the Greek debt crisis on the euro zone, knocking commodities.
The Greek prime minister said he would form a new government, while euro zone finance ministers conceded that an agreement over a second international bailout for Athens would take longer than expected.
That pummeled the euro and pushed to record highs the cost of insuring against default the debt of Greece and several other peripheral euro zone nations. It also dented palladium, copper and gold, which normally profits from such environments.
Spot gold was down 0.27 percent to 1 525.69 an ounce by 1107 GMT, after rising to around $1 533 on Wednesday on the back of weaker equity markets.
Gold is 3.2 percent below a lifetime high at $1 575.79 touched in early May, but still up 7.5 percent so far this year, having risen by nearly 24 percent in the last year.
The Greek prime minister said he would form a new government, while euro zone finance ministers conceded that an agreement over a second international bailout for Athens would take longer than expected.
That pummeled the euro and pushed to record highs the cost of insuring against default the debt of Greece and several other peripheral euro zone nations. It also dented palladium, copper and gold, which normally profits from such environments.
Spot gold was down 0.27 percent to 1 525.69 an ounce by 1107 GMT, after rising to around $1 533 on Wednesday on the back of weaker equity markets.
Gold is 3.2 percent below a lifetime high at $1 575.79 touched in early May, but still up 7.5 percent so far this year, having risen by nearly 24 percent in the last year.
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