Oil dropped for the first time in three days on concern that the worsening European debt crisis will slow global economic growth and reduce demand for crude.

Prices declined as much as 2.4 percent as Spanish borrowing costs rose to a euro-era high. More Spanish loans went unpaid in April, Bank of Spain data showed, suggesting the country’s recession is forcing more companies and consumers into default. The weekend elections in Greece eased concern that the country will exit the euro.

Oil for July delivery fell to $82.04 a barrel on the New York Mercantile Exchange. Prices are down 19 percent in the second quarter and 16 percent this year.

Brent oil for August settlement dropped $1.56, or 1.6 percent, to $96.05 a barrel on the London-based ICE Futures Europe exchange.

Gold prices fell as optimistic with regard to Greece, subsided, and fears for Spain and Italy have increased. Markets are waiting for the results of the U.S. Federal Reserve meeting, which will take place this week.

Lower prices at the beginning of the session caused a rise in demand for gold in India - the world's largest consumer of precious metals, dealers said. In the coming months, the demand will remain low, as in the monsoon season does not go through the major holidays.

Stocks of the world's largest gold ETF-secured fund SPDR Gold Trust last week rose by 2.6 tons.

The June gold futures on the COMEX today fell to 1615.0 dollars per ounce.