Gold falls on Europe anxiety, downgrade fears

LONDON, Dec 13 (Reuters): Spot gold fell to a seven-week low on Tuesday, extending a 2.6 per cent decline in the previous session, on concerns ratings agencies may downgrade some euro zone nations over a lack of concrete plans to tackle the debt crisis. The euro languished near a two-month low, and although equities steadied they remained vulnerable to further falls as investors remained unconvinced about the effectiveness of decisions made at last week's EU summit. A weaker euro vs the dollar makes gold priced in the US unit more expensive for holders of the euro zone currency. "I suspect that the euro will remain under pressure," said Citi analyst David Wilson. "If we do get any sovereign downgrades by the S&P this week I suspect the euro will be under even more pressure. It's difficult to see short-term what's going to lift gold."