Gold fell on Monday as a robust dollar outweighed the impact of lower equity markets and some retail demand after Greek voters rejected the terms of a bailout package, potentially setting Athens on a path out of the euro. Official figures from a referendum on Sunday showed 61 percent of Greeks had said no to a deal that would have imposed more austerity measures on an already ravaged economy. Spot gold was down 0.2 percent at $1,165.70 an ounce by 1343 GMT, while US gold futures were unchanged at $1,165.20 an ounce.
"There has been some increase in the US dollar, which is not going to help gold demand, but there is a limited downside from here because we are close to marginal costs of production," ETF Securities analyst Martin Arnold said. The metal, typically seen as an alternative investment in times of financial and economic uncertainties, rallied during Asian hours, reaching a near one-week high of $1,174.70, but failed to hold onto gains, as the dollar gained versus the euro.
The single currency was weighed down by the uncertainty over Athens' financial situation and its future in the euro. European leaders called a summit for Tuesday to discuss their next move. "There isn't the fear of a pan-European crisis, as was the case a few years ago, when you saw a rush to gold, which was already in a bull market," Macquarie analyst Matthew Turner said.
Gold reached an all-time high of $1,920 in 2011, supported by euro zone sovereign debt fears and a weaker dollar. "We are now in a bear market, which is negatively impacting investors' sentiment," Turner added. "People are still not sure they need a safe haven and if they do need one, they are not sure it should be gold."
The Greek vote leaves the country in uncharted waters, risking a banking collapse. Without more emergency funding from the European Central Bank, Greece's banks could run out of cash within days. Investors were mostly still focused on expectations the Federal Reserve will raise interest rates from record lows this year, which would increase the opportunity cost of holding gold.
Platinum was the weakest performer among precious metals, with a 3.1 percent fall to its lowest since March 2009 at $1,046.75 an ounce. Silver was down 0.6 percent at $15.56 an ounce and palladium fell 1.8 percent to $667.50 an ounce, close to a two-year low hit last week.