Gold and silver slumped to the lowest levels in four months as Greek leaders struggled to form a government, increasing concern Europe?s crisis will escalate and boosting the dollar. Palladium dropped for an eighth day.
Spot gold fell for a third day, declining as much as 1.1 percent to $1,587.28 an ounce, the lowest price since Jan. 3. The metal was at $1,595.45 at 2:21 p.m. in Singapore, having pared gains this year to 2 percent. The euro tumbled for an eighth day against the dollar in the worst run since 2008.
Alexis Tsipras of Greece?s Syriza party, who holds the mandate to form an administration after May 6 elections, said he expected Antonis Samaras of New Democracy and Evangelos Venizelos, who leads the Pasok party, to revoke written pledges to implement austerity measures by the time he meets them today to discuss an alliance. Both rejected the request.
There are ?growing concerns that a new Greek government could break pledges made by the previous regime on austerity,? said Nick Trevethan, senior commodities strategist at Australia