By RHIANNON HOYLE LONDON—Gold prices fell, weighed down by a weak euro as financial markets continue to focus on the European sovereign-debt crisis ahead of an austerity vote by the Greek Parliament this week. The market slipped as other precious and base metals pulled back in line with euro, which has been hit by uncertainty over the vote. The Greek Parliament must pass the proposed austerity measures in order to receive the next tranche of financial support from the European Union and International Monetary Fund. In early morning trading in New York, gold was down 80 cents, or 0.1%, at $1,401.50 a troy ounce. The euro was down 0.1% against the dollar at $1.41710. Brent crude oil and several agricultural commodities also fell. Commerzbank said gold prices have been "unable to profit from continued high-risk aversion of market players," as it has been pressured by the currency markets. Still, it doesn't expect prices to retreat much further. While gold often has an inverse relationship to the dollar—with any strengthening by the dollar making the metal more expensive for other currency holders—any further jitters over Greece and the wider bloc of euro-using nations should encourage interest in the metal as a perceived safe harbor and alternative store of value, analysts said. The official sector also remains very friendly toward gold, with the desire to reduce gold reserves within a 10-year horizon having disappeared, and interest to increase holdings and price expectations elevated, UBS analyst Edel Tully said in a note. The bank last week hosted its Annual Reserve Management Seminar for Sovereign Institutions—a gathering of central bank reserve managers, multilateral institutions and sovereign-wealth funds—and the analyst said a plurality of attendees expected gold will be the best performing asset class for the remainder of this year, with global stocks in second place. Write to Rhiannon Hoyle at rhiannon.hoyle@dowjones.com

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