Gold prices remained relatively flat in the Indian and international markets despite the rejection of a bailout package by Greek citizens in a referendum, results of which were released late yesterday. The spot prices in some markets, notably US and Far East, rose by around 1%, even reaching a two week high of $1174 in the US, before settling at about 0.3% above the low levels at which gold has hovered over the last couple of weeks.

Over 60% of Greek citizens rejected the conditions of the financial rescue package offered to the government by various international agencies, creating an element of uncertainty regarding the future of the country in the Eurozone, and its wider impact on the European and international economy.

Traditionally, in such times of financial turmoil, investors have turned to gold as a safe haven, something that has so far not been seen in the context of the current Greek crisis. Analysts believe that there are many reasons for this, with the principal one being the market’s anticipation of a possible increase in the US Fed rates that is expected soon this year.

Global prices have also faced downward pressure due to the poor demand seen in India, one of the largest consuming markets. Domestic demand has been slow, and reports suggest that there are adequate stocks of the metal with stockists and traders.

However, the situation remains fluid and bankers and analysts are not ruling out a sharp rise in prices if the Greek situations spirals, with a larger-than-expected impact.