Pulling down the price of the yellowish metal during the first trading session of the week were concerns about the gravity of the sovereign debt crisis becoming more severe. Greece, the emblem of nations victimized by the scourge after receiving two tranches of emergency bailout aid since June 2010, was challenged by a political stalemate on leadership of the nation, which might push the country's withdrawal from the euro zone.
"Gold is under severe pressure. The U.S. dollar is being seen as a safe haven at the moment and as long as the dollar is appreciating against the euro this is clearly weighing on the gold price," analyst Daniel Briesemann with Commerzbank told the news source. "I wouldn't be surprised if we test the December low of around $1,520 an ounce and if we don't stop here we could go below $1,500."
At 1:02 p.m. on Monday, gold futures fell 1.45 percent, a $22.90 reduction to $1,561.10 per troy ounce.
The Wall Street Journal reports voters in the Aegean nation are likely to cast ballots again next month as a result of the inability to establish a clear leader.