Gold suffers biggest loss in a month on Greece concern

Gold today suffered biggest drop in a month after Alexis Tsipras, the head of the Greek Syriza party, received a mandate to form a government, boosting concern that austerity efforts will be derailed.

Gold dropped 1.76% to $1,609.70 an ounce, a biggest loss since April 4. Silver also tumbled 2.33% to $29.39 an ounce, steepest fall since April 23.

Tsipras said he would not agree to join forces with New Democracy and Pasok, the two Greek parties that have supported austerity measures in return for international funds.

A left coalition government would nationalise banks to spur growth, repeal recent labour reforms and immediately cancel the bailout accords, he said.

Gold dropped 1.2% last week on concern that an intensifying debt crisis in Europe will slow global growth and curb demand for bullion as a hedge against inflation.