Gold Drops Below $1280 as Stocks Recover

Gold fell more than 1 percent on Monday as traders cashed in gains that took the metal to five-month highs last week, with the wider markets shrugging off news that an anti-austerity party had won elections in Greece.

Greek leftist leader Alexis Tsipras, whose Syriza party swept to victory in a snap election on Sunday, was set to become prime minister of the first euro zone government openly opposed to the bailout conditions imposed by the European Union and International Monetary Fund during the economic crisis.

Greek stocks fell on the news but the broader European share market was firmer, focusing on the positive impact of the European Central Bank’s (ECB) bond-buying plan unveiled last week.

Reuters

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