Gold prices declined today as investors assess the political consequence after trading close to five-month highs earlier supported by the outcome of the Greek elections s. Increasing uncertainty over the political and economic future of Greece, a possible exit from the Eurozone, and the Eurozone as a whole lend support to the precious metal. The anti-austerity party Syriza won a decisive victory within 2 seats of the absolute majority. Alexis Tsirpas, the new Prime Minister, has pledged to keep Greece within the monetary union but wants to renegotiate Greek debt.

Gold prices rose nearly 9 percent this year, after declining for two consecutive years. Speculations that the FED will hold back its benchmark interest-rate hike till the end of the year further helped gold but the forecast for the current year remains uncertain.

The precious metal is currently quoted at USD1,282.50, -0,93% a troy ounce declining from a daily high at USD1,298,90. On Thursday last week gold reached a five-month high at USD1,307.40.