Gold rises towards $1,300 as Greek vote sparks safe-haven demand
Tuesday, 27 January 2015
SINGAPORE, Jan 26 (Reuters): Gold climbed towards a five-month high on Monday as an electoral win by Greece's anti-austerity party sparked fears of renewed instability in Europe, triggering safe-haven demand for bullion.
Spot gold ticked up 0.1 per cent to $1,295.41 an ounce by 0030 GMT, while US gold futures rose 0.2 per cent. Spot gold had hit a five-month high of $1,306.20 last week. Greek leftist leader Alexis Tsipras was set to become prime minister of the first euro zone government openly opposed to bailout conditions imposed by European Union and International Monetary Fund during the economic crisis.
Tsipras promised that five years of austerity, "humiliation and suffering" imposed by international creditors were over after his Syriza party swept to victory in a snap election on Sunday. European leaders have said Greece must respect the terms of its 240 billion euro bailout deal, but Tsipras campaigned on a promise to renegotiate the country's huge debt, raising the possibility of a major conflict with euro zone partners.
The euro hit a fresh 11-year low on Monday following the election results, while US stock futures also fell on heightened uncertainty.