Gold and silver prices fell to four-month lows on Wednesday, as political instability in Greece and France continue to stoke concern about a wider fallout for the debt-plagued eurozone. The euro tumbled for an eighth day today against the US dollar in the worst run since 2008.
Gold of 99.99% purity fell as much as 2.4% to a four-month low of 324.50 yuan a gram (US$1,599.11 an ounce) on the Shanghai Gold Exchange.
Spot silver declined for a third day, losing as much as 1.8% to US$28.7025 an ounce, the cheapest since Jan. 9.
Cash palladium, this year’s worst-performing precious metal, slumped as much as 1% to US$615.68 an ounce, the lowest price since Jan. 10. The eight-day drop is the worst losing run since September 2008.
Platinum fell for a second day, dropping as much as 0.7% to US$1,501.50 an ounce, equaling yesterday’s low, which was the cheapest since Jan. 17.
Alexis Tsipras, whose Syriza party was placed second in Greek elections on May 6, said he would go ahead with plans to form a coalition government of left-wing parties after he was handed the mandate by President Karolos Papoulias.
Tsipras said he wouldn’t agree to join forces with New Democracy and Pasok, the two Greek parties that have supported austerity measures in return for international bailout funds. Tsipras called on the leaders of both parties to withdraw their pledges to implement stringent budget cuts by today.
Tsipras is to meet Antonis Samaras of New Democracy and Evangelos Venizelos, the former finance minister who leads Pasok, today to discuss a government alliance.
Greek political leaders are meeting for a second day to try to form a government after Samaras, who won the most seats in Parliament, said he couldn’t forge a coalition. Another election may be held in mid-June if politicians fail to form a governing coalition.
The risk of Greece leaving the euro by the end of 2013 has risen to as high as 75 percent, Citigroup Inc. said on May 7.
Commodities fell for a sixth day today in what is the longest losing streak since August 2011.
The Standard & Poor’s GSCI Spot Index, which tracks 24 raw materials, lost as much as 0.3% to 646.79.
A close below 644.91 would eliminate the year’s gains.
The Standard & Poor’s GSCI Spot Index dropped as low as 641.8 in intraday trading yesterday.