Gold prices hit low of year on European concerns

The Associated Press
Associated Press

Gold prices are falling to the lowest level of the year as uncertainty about Europe's political and economic future dominates financial markets.

Gold for June delivery dropped $10.30 Wednesday to finish at $1,594.20 an ounce. That's the lowest price since Dec. 30 when it ended at $1,566.80 an ounce.

Investors are worried about how Europe will manage its debt crisis and economic recovery. There is political turmoil in Greece, and borrowing rates rose in both Italy and Spain.

Many analysts believe gold and other commodities will remain under pressure until there is a better idea of how Europe will cope with the problems.

In other trading, prices for silver, copper, oil, wheat, corn and soybeans are lower. Natural gas and gasoline futures are higher.