Gold, Silver Fall for Second Time in Three Days on Dollar Rally

November 23, 2011, 4:21 PM EST
By Debarati Roy and Maria Kolesnikova

Nov. 23 (Bloomberg) -- Gold and silver futures declined for the second time in three days as the dollar’s rally muted demand for precious metals as an alternative investment.

The euro fell to a six-week low against the greenback after Germany failed to get bids for 35 percent of its bonds in an auction today. The country sold 150,000 ounces of gold in October, Dow Jones reported, citing International Monetary Fund data. Political leaders are struggling to stem fiscal woes that have roiled Greece, Ireland, Portugal, Italy, Spain and France.

“Dollar strength and concerns about a systematic liquidity event are weighing on gold,â€