Gold falls to lowest this year as Greek crisis weakens euro

SINGAPORE: Gold today dropped to the lowest price this year as the euro weakened to a four-month low on concern Greece will exit the shared currency, boosting the dollar. Silver was the worst run in more than three years.

Gold declined 0.2 per cent to $ 1,552.97 an ounce, the lowest level since December 30, and silver fell 0.4 per cent to 28.04 an ounce, the lowest since January 3. That's the seventh daily decline and the longest losing streak since March 3, 2009.

The metal erased gains for the year yesterday as a political impasse in Greece prompted European officials to weigh prospects for the currency union's first-ever departure. Greek President Karolos Papoulias will try to persuade party leaders today to accept his proposal for a government of non-politicians.

The 17-nation currency was at $ 1.2833 after earlier sliding to $ 1.2814, the weakest since January 18.

Commodities declined for a tenth day, the longest losing streak since 1998, as oil traded near a five-month low and copper fell to the lowest since January.