Gold Declines in London as Dollar Extends Gains Against Euro; Silver Drops

(Bloomberg) -- Gold dropped in London on expectations
that a rebound in the dollar against the euro may reduce demand
for the precious metal as an alternative investment. Silver fell
for a second day.

Gold gained 23 percent last year as the dollar dropped 10
percent against the euro and rising prices for raw materials such
as copper, orange juice and corn spurred demand for a hedge
against inflation. The dollar has rebounded from a record low in
April and U.S. consumer price increases slowed.


Read more at Bloomberg Commodities News