New York: Gold on Wednesday dropped to four-month low on concern that turmoil in Greece will strengthen the dollar and curb demand for the metal as an alternative asset.
    
The gold fell 1.5 percent to USD 1,581.10 an ounce, the lowest price since January 3. Silver also dropped 2.7 percent to USD 28.67 an ounce, its lowest since January 9.
    
The euro neared a three-month low against the dollar as Greek politicians struggled to form a new government, raising concern that the nation may leave the currency bloc.
    
Commodities plunged to the lowest level this year as global equities slid to a three-month low.
    
The plunge has pared this year's gain to 1.3 percent, after the metal advanced for 11 consecutive years. Futures reached an all-time high of USD 1,923.70 in September.
    
Alexis Tsipras, whose Syriza party placed second in Greek elections on May 6, said he would forge ahead with plans to form a coalition government of left-wing parties after he was handed the mandate by President Karolos Papoulias.

(Agencies)

 

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