Weakness in Gold was not fueled by any meaningful strength in the U.S. dollar on Tuesday

Weakness in Gold was not fueled by any meaningful strength in the U.S. dollar on Tuesday, but did coincide with further widespread losses in equities and cyclical commodities. In afternoon trading, crude oil futures dropped 3.0% to $75.30 per barrel, while copper slid 3.5% to $3.04 per pound.

The gold price dipped Wednesday morning, sliding $28.30 to $1630.40 per ounce on the back of continued liquidation pressures in global financial markets. The 0.5% drop in the price of gold occurred alongside broad-based weakness in commodities. WTI crude oil led to the downside, dropping 2.6% to $75.58 per ounce while copper declined 1.5% to $3.10 per pound.

Jean-Claude Juncker, the chairman of the Eurogroup ministers, told reporters after the meeting that “As far as the PSI (private sector involvement) is concerned, we have to take into account the fact that we have experienced changes since the decisions we took on the July 21, so we are considering technical revisions, so yes.”

Although Juncker did not provide specifics on what a new agreement could look like, speculation has developed that the 21% haircut on Greek debt agreed to in July will be insufficient given the fact that Greece’s economy has deteriorated further in recent months.

European financial markets added to their recent losses on Tuesday following the meetings, as investors viewed the developments as the latest item of uncertainty in an ever-growing list of headwinds for the euro zone.

The next meeting of euro zone finance ministers – originally scheduled for October 13 – has been canceled so that inspectors from the European Union (EU) and International Monetary Fund (IMF) will now have until November to asses the impact of Greek austerity measures on the nation’s budget deficit before deciding on the eventual sovereign debt haircut.