Gold futures fell the most this year on speculation that an election victory in Greece by the anti-austerity political party won™t result in the country™s exit from the euro zone, crimping demand for haven assets.
The euro rebounded from an 11-year low against the dollar as Greek Prime Minister-elect Alexis Tsipras pledged to keep the nation within the single currency area. Gold rose for three straight weeks partly as Europe™s flagging economy drove demand for a store of value.
After posting two straight annual declines, gold last week reached a five-month high after the European Central Bank announced plans to increase economic stimulus, raising the appeal of alternatives to currencies that are being revalued. The metal dropped 29 percent in the previous two years as the American economy improved.
Gold futures for February delivery dropped 1 percent to settle at $1,279.40 an ounce at 1:44 p.m. on the Comex in New York, the biggest decline for a most-active contact since Dec. 31. Aggregate trading was 38 percent more than the 100-day average, according to data compiled by Bloomberg.
Source : Bloomberg