Singapore - Arabstoday
Gold dropped to a four-month low yesterday, pressured by a weaker euro as investors fretted about the political upheaval in Greece that threatens to sink the country into chaos and endanger the Eurozone\'s efforts to end the debt crisis. Spot gold dropped to as low as $1,586.74 an ounce, unseen since early January, extending a 2 per cent slide from the previous session. It stood at $1,593.56 by 0557 GMT. US gold also dropped to a four-month low at $1,587.40. The Leftist candidate for prime minister in Greece has so far failed to form a government, as his opposition to a bailout deal seen crucial for the economy alienated mainstream parties and shook market confidence that the Eurozone will pull itself out of the debt crisis. Nervous investors sought out safe haven assets such as the dollar and German Bund, while gold remained lock-stepped with the euro and riskier assets. Article continues below The euro was headed for its eighth straight session of losses against the dollar and fell close to a recent three-month low. \"The situation in Eur-ope is difficult, but what\'s happening is that anything that\'s slightly tainted with risk is being sold, even though the real risk associated with that product is less than one could justify by its price movements,\" said Nick Trevethan, senior metals strategist at ANZ in Singapore.