Decline in gold, on Monday, under pressure from rising dollar, with the growing concern about the European debt crisis after fueled Spain fears it may need a rescue plan and prompted fears Spanish euro to record its lowest level in two years against the dollar, which increased price and reduced the attractiveness of gold and other commodities denominated in U.S. currency.
There are fears among investors and in Spain, the fourth largest economy in the euro area, from Madrid to follow the example of Greece, Portugal and Ireland, which received financial assistance from international donors, the cost of borrowing rose after those states exceeding reasonable limits.
The decline in gold price in the spot market 0.6% to 1574.29 USD/troy an ounce, after record loss of 0.3% last week.
Futures fell U.S. Gold for August delivery also 0.6% to 1574.10 dollars an ounce.
Among other precious metals platinum fell to its lowest level in three weeks at 1394.25 dollars an ounce.
Silver also fell 1.14% to 26.98 dollars an ounce, while palladium lost 0.22% to fetch up to 569.75 dollars an ounce.