Gold retreated today as the US dollar surged after a sharp increase in Spain’s borrowing costs prompted investors to pour money into riskier assets. Early in the session, stock markets around the globe rallied after pro-bailout parties secured enough votes to form a coalition in Sunday’s elections in Greece. The centrist New Democracy win the vote, while the anti-austerity Coalition of Radical Left came second. However, the election results failed to quell fears that the debt-laden country could eventually leave the euro zone. Greece is still at odds with the monetary union’s largest economy Germany over whether its bailout deal can be renegotiated. Leader of New Democracy Antonis Samaras said he would try to change the terms of the bailout agreement, however, Germany ruled out the possibility of amending the deal. Gold traded at US$1,622/oz this afternoon, down US$4 from Friday’s close. Other precious metals moved in the same direction as gold with silver falling seven cents to US$28.67/oz and platinum, dropping US$3 to US$1,477/oz. Today’s top risers in the sector were: Patagonia Gold (LON:PGD), up 10 percent at 28.25 pence at midday Anglo Asian Mining (LON:AAZ), up 3.5 percent at 37.25 pence Mariana Resources (LON:MARL), up 3 percent at 5.15 pence Orosur Mining (LON:OMI), up 2.5 percent at 42 pence The top fallers were: Orsu Metals (LON:OMI), down 5.5 percent at 6.5 pence at midday Triple Plate Junction (LON:TPJ), down 5 percent at 1.4 pence Petropavlovsk (LON:POG), down 5 percent at 470.08 pence Oxus Gold (LON:OXS), down 4.5 percent at 2 pence

Source