Lucas Papademos of Greece is tasked with securing the Aegean nation's second tranche of international aid in 17 months while Mario Monti of Italy is forming a government and working on austerity cuts to prevent the sovereign debt crisis from becoming full blown in Italy. The gravity of damages in the euro zone helps create circumstances that will encourage the value of gold to increase, according to one analyst.
"In the longer term there is still a lot of uncertainty, such as the many challenges Italy faces as to how the new government will implement harsh reforms," analyst Ong Yi Ling with Phillip Futures told Reuters. "The overall backdrop remains supportive of safe haven demand in general."
At 8:32 a.m. on Monday, gold futures dropped 0.45 percent, an $8.10 fall to $1,780 per troy ounce.
As host of the globe's eighth-largest economy, Italy is under the duress of economic and political upheaval, leaving an air of chaos is the nation, according to The Washington Post.
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