Gold Drops Below 1280 as Stocks Recover

Gold fell 1 percent on Monday as traders cashed in gains that took the metal to five-month highs last week, with the wider markets recovering ground lost after an anti-austerity party 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 bailout conditions imposed by the European Union and International Monetary Fund during the economic crisis.

Greek stocks fell on the news, but European equities rose 0.2 percent, as the market focused on the positive impact of the European Central Bank’s bond-buying plan unveiled last week.  Spot gold was down 1 percent at $1,280 an ounce. U.S. gold futures for February delivery settled $13.21 lower, at $1,279.40 an ounce.


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