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By Bloomberg

Gold extended gains from a one-month low as investors assessed Greece’s political crisis, including the potential for the country’s exit from the euro zone, with diverging central-bank policies in the U.S and Europe. Silver, platinum and palladium climbed.

Bullion for immediate delivery rose and fell at least 0.5 percent, and traded 0.4 percent higher at $1,193.48 at 10:33 a.m. in Singapore, according to Bloomberg generic pricing. The metal dropped to $1,168.34 on Jan. 2, the lowest level since Dec. 1, before rallying to end 0.5 percent higher as the concern that Greece may exit the currency area boosted haven demand.

Greek Prime Minister Antonis Samaras said on Jan. 2 that victory for the main opposition Syriza party in the Jan. 25 elections would cause default and the country’s exit from the 19-member euro region, sending the common currency to the weakest since March 2006. Gold rose for the first time in four months in December in part as economies outside the U.S. are slowing, prompting monetary stimulus measures to spur growth.

“Political instability in Greece and expectations for quantitative easing in Europe combine to weaken the euro against the dollar,” said Lv Jie, an analyst at Cinda Futures Co. in Hangzhou, China. “The weaker euro should pressure precious metals lower but there may be an element of safety.”

Gold posted the first back-to-back annual decline last year since 2000 as Federal Reserve ended stimulus in October and moved closer to raising its key rate. The Bloomberg Dollar Spot Index rose to the highest since at least 2005 today. European Central Bank President Mario Draghi said last week that he can’t rule out deflation in the region, boosting the prospects for large-scale government-bond buying.

SPDR Steady

Gold for February delivery rose 0.6 percent to $1,193.70 an ounce on the Comex after futures dropped for two straight years in the longest slump since 1998. Assets in the SPDR Gold Trust, the largest exchange-traded product backed by bullion, were unchanged on Jan. 2 at the lowest since September 2008.

Silver for immediate delivery increased as much as 2 percent to $16.065 an ounce and traded at to $16.0142. The metal retreated 19 percent last year after a 36 percent plunge in 2013.

Spot platinum rose 0.9 percent to $1,212.56 an ounce. Prices last year posted a back-to-back annual decline for the first time since 1997. Palladium gained 0.7 percent to $800.25 an ounce, rebounding from five straight daily losses.