Gold for June delivery rose $7.7 Monday to $1,576.6 an ounce on the Comex division of the New York Mercantile Exchange after polls in Greece pointed to a victory for the pro-bailout New Democracy party ahead of elections next month.
Analysts hope a conservative victory on June 17 will lead to Athens forming a government that would agree to stringent bailout terms by the European Union and the International Monetary Fund, which would stave off an exit from the euro.
On Friday, gold prices ended higher, but not enough to offset a weekly loss for the yellow metal, which fell 1.4 per cent last week.
On Sunday, four separate Greek polls showed the pro-bailout conservative New Democrats gained support with a modest lead over the radical leftist Syriza party.
Despite the poll results, corporate and investment banking firm Credit Agricole CIB said “uncertainty remains” over whether a Greek pro-bailout coalition can be formed in the three-week run-up to the election.
In other metals, silver futures edged up 1.16 percent to $28.48 per ounce, while the base metal copper contract rose 1.59 percent to $3.48 per pound.
Light sweet crude oil (WTI) futures rose 92 cents to $91.78 per barrel.
