CHICAGO, Dec. 5 (Xinhua) -- Gold futures on the COMEX Division of the New York Mercantile Exchange declined on Monday, as progress in resolving the EU debt problem helped reduce demand for gold as a safe-haven investment.
The most active gold contract for February delivery lost 16.8 U. S. dollars, or one percent, to 1,734.5 dollars per ounce.
Market analysts said that investors are more optimistic over the prospect of the EU economy in wake of European leaders' recent progress in addressing the debt problem, which, however, took some of the luster off gold investment as a safe haven.
French President Nicolas Sarkozy and German Chancellor Angela Merkel Monday said at a joint news conference that they would press for a new treaty to strengthen euro-zone fiscal rules in an effort to restore confidence in the shared currency. EU leaders would meet in a summit on Friday to see if the treaty could win quick approval across the EU or just within the euro area.
A trader noted that Friday's European Union summit is the most important meeting over the next few days, though investors would have to wait for a long time before a permanent solution to the crisis is found.
Silver for March delivery shed 31.4 dollars, or 0.96 percent, to 32.372 dollars per ounce. Platinum for January delivery also dropped 16 dollars, or one percent, to 1,532.5 dollars per ounce.
