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Gold Drops for Third Session in Row as Eurozone Summit Shows Progress
Jul 22,2011 08:58CST
data analysis
Source:SMM
Gold futures on the COMEX Division of the New York Mercantile Exchange extended a losing streak into three sessions on Thursday.

CHICAGO, Jul. 22 -- Gold futures on the COMEX Division of the New York Mercantile Exchange extended a losing streak into three sessions on Thursday, after European leaders agreed on a plan to contain the region's sovereign-debt crisis, dimming gold' s shine as a safe-haven asset.

The most active gold contract for August delivery dropped 9.9 dollars, or 0.6 percent, to 1,587 dollars per ounce.

A trader mentioned that the precious metal has lost some steam as officials indicated that German Chancellor Angela Merkel and visiting French President Nicolas Sarkozy had found a common position on rescuing indebted Greece, hours ahead of a key EU summit.

But some analysts believed that gold remained well supported as some investors worried that the new plan might not be enough to restore market faith in European financial system which exhibited a lack of credibility.

The dollar index, which compares the U.S. unit with a basket of six currencies, dropped on Thursday, lifting gold's appeal as an alternative asset.

Silver for September delivery lost 61.1 cents, or 1.5 percent, to 38.947 dollars per ounce.

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