Gold Falls with Higher Dollar, Eurozone Concerns

CHICAGO, May 16 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange fell further Wednesday to the lowest level in 10 months, as a higher U.S. dollar and continued uncertainty in Greece weighed on traders.

The most active gold contract for June delivery lost 20.5 dollars, or 1.32 percent, to settle at 1,536.6 dollars per ounce.

Gold extended its losing streak to four straight days Wednesday, as continued rise in the dollar put significant pressure on the precious metal.

Investors gravitated to the dollar in response to continued uncertainty regarding the political situation in Greece, as they currently see the greenback as a safe haven.

While before gold had actually taken some momentum from economic woes such as those in Greece, recently the precious metal seems to have lost some of its traditional safe haven appeal as investors have increasingly preferred the dollar.

In the last few months gold has largely been tracking with the direction of U.S. equities and crude oil, markets that were mixed on Wednesday.

Continued high performance by the dollar put even further pressure on gold, as a stronger greenback makes commodities in general more expensive for holders of other currencies.

Silver for July delivery fell 88.4 cents, or 3.15 percent, to settle at 27.196 dollars per ounce.