Topic: U.S. Dollar

Gold rose more than 1 percent on Thursday, bouncing off a 4-1/2 month low, as weaker prices attracted new physical buyers, but gains were likely to be limited as the euro was undermined by fears of a deepening debt crisis in Greece.

The euro held above a four-month low on Thursday, taking a breather from a sharp sell-off, although it was vulnerable to a further slide due to worries about the solvency of some Greek banks and fears the country may exit the euro zone.

Gold recovered from a 2012 low, but still ended down on Wednesday, as U.S. stocks inched higher after speculation that Germany and France will act to keep Greece in the euro zone lifted the euro into the black.

The euro hovered near a fourth-month low against the U.S. dollar on Wednesday and more losses could be in store as investors feared a Greek exit from the euro zone that could result in other peripheral countries following suit.

Gold slipped to a fresh 4-1/2 month low on Tuesday as the euro continued to lose ground to the dollar after Greece's failure to form a coalition government heightened concerns over Europe's financial crisis and led investors to spurn risky assets.

The euro continued to fall on Tuesday with investors expressing strong aversion to risk after Greece failed to form a government and said it would hold new elections, raising the chances it could eventually exit the euro.

Gold prices fell to a 4 1/2-month low on Monday, hit by concerns about a worsening debt crisis in the euro zone following political deadlock in Greece which fuelled risk aversion and put pressure on the euro.

The euro fell to a nearly four-month low against the dollar on Monday on fears Greece could exit the euro and worries that weak industrial data signaled that Europe was heading for recession.

The situation in the euro zone has become so bleak that it is giving rise  to rumors the euro will be tied to the dollar at close to parity, a dramatic fall, which would have severe implications for the US and China. The Financial Times reports.

Walking through his high-ceilinged factory here, explaining the production of sheets of copper, M. Brian O’Shaughnessy comes across as a staunch advocate of manufacturing in America.

Gold fell almost 1 percent on Friday as fears over a worsening European debt crisis and sharp losses in equities and commodities sent the precious metal to its biggest weekly decline this year.

The euro traded roughly flat  against the dollar on Friday but hovered near a 3-1/2-month low as political uncertainty in Greece and hefty losses unveiled by U.S. bank JPMorgan Chase kept investors wary of placing bets in favor of the currency.

Gold rose on Thursday, ending a three-day losing streak, as bargain hunters waded into the market after prices fell sharply this week on worries about a worsening European debt crisis.

The euro rose against the dollar on Thursday, snapping eight straight sessions of declines as stress in Spanish debt markets eased and Greece secured funds to repay its bondholders.

Gold dropped below $1,600 an ounce in heavy trading on Wednesday, nearly wiping out gains for 2012 as political uncertainty in Greece and Spanish bank worries prompted investors to sell bullion for a third straight daily decline.