Gold tumbles through $1,600 to lowest level in four months

The gold spot price fell to a four-month low of $1,596 on Tuesday after the dollar strengthened significantly against the euro and other leading currencies.

While the single currency has been resilient in the face of the ongoing eurozone crisis, signs of strain - sparked by the growing belief among investors that Greece will now be forced to exit the euro - are finally having an impact. The euro was down 0.5% at $1.2986 yesterday, while the US dollar also strengthened against other currencies, including the pound, after Greece's ministers failed to agree a new coalition. The new fear among investors is anti-austerity groups will play a part in any coalition government, resulting in Greece reneging on plans to cut its deficit and leading t...