“(Reuters) – Gold eased on Thursday after a sharp sell-off in the silver market, but still remained within sight of three-week highs, supported by investors seeking perceived havens from the worsening euro zone debt crisis.
Europe’s policy options to avert a Greek debt default appeared to be dwindling, sparking fears of a chain reaction affecting other heavily indebted countries in the 17-nation currency bloc.
The euro rose to one-week highs against the dollar after a report thatChina was interested in buying “bailout bonds” for Portugal, although ongoing concern about the lasting impact of the crisis pulled the currency off session highs.
This in turn helped the dollar pare gains and stripped as much as 4 percent off the silver price, denting gold.
Spot silver fell to a low of $36.30 an ounce before recovering to trade down 2 percent at $37.12 by 5:43 a.m. EDT, while spot gold was down 0.1 percent at $1,520.89 an ounce, after hitting $1,532.00 on Wednesday, its strongest since May 4.”
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