Gold falls 1% on Eurozone downgrade

Gold fell one per cent on Friday after the dollar surged against the euro as a credit downgrade of Eur-ozone countries prompted bullion investors to take profits on the recent rally. Spot gold fell one per cent to $1,633.90 an ounce. It was still up about 5 per cent so far this year, due to buying by investors re-entering the market after a 10 per cent drop in Dec-ember. It was up one per cent for the week, for a second consecutive weekly gain. "The dollar seems to be the main go-to safe-haven play at the moment. The downgrade has taken away some of the recent support from gold," said David Meger, director of metals trading at futures brokerage Vision Financial Markets.