SAN FRANCISCO (MarketWatch) — Gold futures fell sharply early Wednesday, extending losses from Asian and European hours, as the dollar strengthened against the euro after the Italian government was forced to pay investors more than 6% to sell five-year notes. Gold for February delivery tumbled $46.80, or 2.8%, to $1,615 an ounce on the Comex division of the New York Mercantile Exchange. Silver for March delivery lost $2.07, or 6.6%, to $29.18 an ounce. The precious metals have fallen steeply this month as no clear solution to Europe’s debt crisis has caused investors to raise cash, while improving economic data in the U.S. has eased pressure on the Federal Reserve to expand monetary stimulus, supporting the U.S. dollar.

Originally from MarketWatch