Gold tumbles into bear market on Greece concerns
The euro tumbled on Eurozone concerns, pulling the metal lower
Gold today declined for a fourth day and entered a so-called bear market as concerns that Greece will have to leave the euro boosted the dollar and cut the metal’s appeal as an alternative asset.
Gold prices fell 2% to $1,526.70 an ounce, the lowest since December 29, but recovered to trade at 1,538.30 dollar. The metal erased its gains for the year this week.
Silver also dropped 2.3% to $27.42 an ounce, after sliding to USD 27.18, the lowest since December 29.
The US Dollar Index, a measure against six major counterparts, rose a 13th day to a four-month high after Greece's political leaders failed to form a ruling coalition.
Bullion slid 21% from its intraday record in September, the common definition of a bear market.
Gold rose the previous 11 years and reached an all-time high of $1,923.70 in September.