Gold declines first time in seven days after Greek elections

LONDON: Gold today declined for the first time in seven days as pro-bailout parties won enough seats to control Greece's Parliament, curbing demand for protection of wealth.

Gold fell 0.2 per cent to USD 1,623.75 an ounce. The metal is up 3.8 per cent this year after 11 consecutive annual increases. Silver also fell 0.2 per cent to USD 28.62 an ounce.

The Federal Reserve starts a two-day policy meeting tomorrow amid speculation the central bank will add to monetary stimulus to bolster growth.

The New Democracy and Pasok parties won enough seats to form a majority in the 300-member parliament, easing concern that voters would reject the austerity measures needed to qualify for international aid. Global equities reached a one-month high and commodities rose.

Greece was left with a political stalemate after the previous general election on May 6. The main contest in yesterday's ballot was between Syriza leader Alexis Tsipras, who promised to renege on budget cuts demanded by creditors, and New Democracy's Antonis Samaras, who said his challenger was risking an exit from the currency union.