Gold prices fell Monday as the Greek debt crisis returned to the spotlight, renewing concerns about the impact that Europe's financial troubles could have on the global economy.
France and Germany warned Greece's leaders that they need to approve new reforms or risk bankruptcy. Greece could default on a bond repayment next month without another installment of bailout loans.
Separately, the International Monetary Fund said that a sharp downturn in Europe could cut China's economic growth rate nearly in half. China, the world's second-largest economy, is a huge importer of commodities, from oil and copper to soybeans.
"There seems to be more at stake than what happens to Greece; the European authorities still have to convince the markets that they know what they are doing for the region as a whole," INTL FC Stone analyst Edward Meir wrote in a note to clients.
Gold for April delivery fell $15.40 to finish at $1,724.90 an ounce. It was the second consecutive trading day of losses. Gold is still up 10 percent for the year.
Other commodity prices were mixed.
In March contracts, copper fell 3.7 cents to finish at $3.8645 per pound, silver rose 0.1 cent to $33.75 an ounce and palladium declined $2.90 to $705.95 per ounce. April platinum declined $2.10 to end at $1,629.80 an ounce.
Oil prices fell as supplies continued to build. Crude supplies have increased for the past three weeks in the Midwest, and they're expected to keep growing this year. Benchmark crude fell 93 cents to $96.91 per barrel on the New York Mercantile Exchange.
Heating oil rose 5.63 cents to finish at $3.1707 per gallon, gasoline futures rose 1.35 cents to $2.9279 per gallon and natural gas increased 5.1 cents to $2.55 per 1,000 cubic feet.
In March agriculture contracts, wheat increased 7.75 cents to finish at $6.685 per bushel, corn fell 0.25 cent to $6.4425 per bushel and soybeans rose 0.5 cent to $12.33 per bushel.
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