Gold and silver rose on haven demand after Greece voted against yielding to further austerity measures in a weekend referendum, risking the country’s exit from the euro.

Bullion for immediate delivery climbed as much as 0.6 percent to $1,175.45 an ounce and was at $1,173.33 at 8:03 a.m. in Singapore, according to Bloomberg generic pricing. Gold in euros rose as much as 1.8 percent to 1,068.87 euros an ounce.

Investors shifted away from risky assets on the result of the referendum, with gold rising while stock futures and oil fell. Greece’s exit from the common currency after years of crisis would set a precedent for others that membership is reversible. European leaders including Germany’s Chancellor Angela Merkel must now decide whether a rescue is still possible, while at the European Central Bank policy makers assess if the program of Emergency Liquidity Assistance, known as ELA, to Greece’s banks should continue.

With all the votes counted, the result put support for the ‘no’ camp at 61.3 percent, while 38.7 percent voted ‘yes,’ according to the Interior Ministry. Chancellor Merkel will head to Paris on Monday for talks with President Francois Hollande to map out a way forward.

Source : Bloomberg