Gold futures on the COMEX division of the New York Mercantile Exchange fell on Monday as French and Greek elections held over the weekend cast uncertainty on the future of Eurozone austerity measures.

The most active gold contract for June delivery lost 6.1 U.S. dollars, or 0.37 percent, to settle at 1,639.1 dollars per ounce.

Gold returned to negative territory Monday, giving back most of Friday's gains to once again close under the 1,640 dollars an ounce level. Gold futures declined in five of the last six sessions.

U.S. markets in general opened sharply lower Monday, as the weekend elections in Europe raised investors' concerns regarding economic austerity measures.

Socialist candidate Francois Hollande defeated incumbent Nicolas Sarkozy in the French presidential election on Sunday, sparking worries across the financial community. Hollande had campaigned in part on renegotiating the European Union Fiscal Pact, potentially reversing the austerity measures most championed by regional leader Germany.

In response to Hollande's victory, stock markets slumped in the U.S. and internationally, although by mid-afternoon the Dow Jones Industrial Average had recovered from a more than 50-point drop to trade in or close to positive territory.

Also raising alarms in the Eurozone were weekend election results in Greece, where voters rejected the two mainstream, pro-bailout political parties and kept each short of a parliamentary majority.

Greek party talks began Monday to form a coalition government, but a compromise appears somewhat unlikely. Traders continue to be concerned with the fiscal situation, while the Greek public generally continues to resist austerity measures and a government that supports them.

While gold has traditionally been seen as a safe haven asset in times of economic difficulty, recently investors seem to have preferred the U.S. dollar. In the past few months, gold has tracked largely with movement in the U.S. equities.

In response to the Eurozone uncertainty the euro fell to its lowest level since January, while the dollar in turn rose, putting further pressure on gold. A higher dollar is a negative force for commodities markets, as it makes commodities more expensive for holders of other currencies.

Silver for July delivery fell 31 cents, or 1.02 percent, to settle at 30.122 dollars per ounce. Platinum for July delivery dropped 5.9 cents, or 3.8 percent, to close at 1,530.1 dollars per ounce.