Gold falls after EU pledge to save Greece

Gold fell for a second day in New York as a pledge by European Union leaders to stabilise the region's economy cut demand for the precious metal as a haven. EU leaders vowed to stave off a Greek default as long as Prime Minister George Papandreou pushes through a package of budget cuts expected for this week. The dollar gained against the euro and headed for a third weekly advance. Gold, which typically moves counter to the greenback, slid 2.1 per cent yesterday as slumping oil prices drove commodities lower. "A stronger dollar is normally negative for gold," said Peter Fertig, the owner of Quantitative Commodity Research in Hainburg, Germany. "There is temporarily less urge to buy gold as a safe haven," he added. Gold futures for August delivery fell $4.90 (Dh17.9), or 0.3 per cent, to $1,515.60 an ounce on the Comex at 9.51am in New York. Before yesterday, the metal declined 1.2 per cent this week. Signs of fatigue "We are seeing some signs of fatigue here, and it should be quiet for the rest of the day," said Matthew Zeman, a strategist at Kingsview Financial speaking in Chicago. "The long-term fundamentals remain intact," he added. Before yesterday, the precious metal gained seven per cent in 2011, heading for an 11th straight annual gain. Futures reached a record $1,577.40 on May 2 as Greece's debt crisis and record-low US borrowing costs boosted demand for an alternative to currencies.