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Gold Declines in New York as Risk of Greek Default Subsides

Gold declined for the first time in three days in New York as Greece’s drive to stave off the euro area’s first sovereign default curbs demand for the metal as a protection of wealth.

Greek lawmakers backed a bill to authorize an austerity plan required to keep rescue aid flowing after Prime Minister George Papandreou yesterday garnered enough votes for his 78 billion-euro ($113 billion) package of budget cuts and state-asset sales. The metal has declined 4.7 percent from the record set at in early May. Still, gold rose in the second quarter, which ended today, the 11th straight quarterly gain.