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Sax-Gold Ent



Sunday, August 16, 2009

Gold Prices Drop as Weaker Euro Cuts Demand; Silver Also Falls

Aug. 14 (Bloomberg) -- Gold declined as reports showed the cost of living fell in Europe and not in the U.S., boosting the dollar against the euro and eroding demand for the metal as a currency alternative. Silver dropped from a nine-week high.

The euro fell as much as 0.9 percent against the dollar, the first decline in three days. Bullion typically moves in line with the euro. While the U.S. cost of living steadied last month, prices dropped 0.7 percent in the 16-nation euro region, more than forecast. The decline raised concern that the region’s economy may not recover as quickly as others around the world.

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