Gold drops on stronger dollar

08:29, March 23, 2010      

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Gold futures on the COMEX Division of the New York Mercantile Exchange ended lower on Monday as dollar rose against euro amid disagreement among the EU nations about how to deal with Greece's debt issue. Sliver and platinum both dipped.

The most active gold contract for April delivery dropped 8.1 U. S. dollars, or 0.7 percent, to finish at 1,099.5 dollars per ounce.

Greek debt woes have roiled global financial markets for nearly two months as Greece was looking for outside support.

German Chancellor Angela Merkel argued on Sunday that Greece, which has imposed an austerity plan to cut budget, doesn't need financial help and EU leaders shouldn't make aid an issue, so a bailout plan for Greece won't be discussed at a summit this week.

Meanwhile, Jose Manuel Barroso, the European Commission president, has urged EU leaders to decide on a support mechanism for Greece at the summit this week in order to help preserve the European monetary union.

The euro hovered near a three-week low against the dollar on Monday as investors' concern over the uncertain prospect of support for Greece arose again. The stronger dollar usually means weaker gold for traders purchase the precious metal as assets against dollar's depreciation.

May silver dropped 9.7 cents to 16.935 dollars per ounce. April platinum was down 7.3 dollars to 1,601.3 dollars an ounce.

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