Gold on Monday resumed declines in on speculation less US stimulus and an improving economy will cut demand for gold as a protection of wealth.
Gold fell 0.8 per cent to $1,193.45. Prices reached a 34—month low of $1,180.50 on June 28. Silver also lost 0.3 per cent to $19.36 an ounce.
Prices fell to $1,187.13 on December 20, before rebounding to settle 1.2 per cent higher.
Meanwhile, gold tumbled 29 per cent this year, set for its biggest annual drop since 1981, as some investors lost faith in the metal as a store of value. It climbed every year starting 2001. The Fed said on December 18 it will cut monthly asset purchases to $75 billion from $85 billion, while pledging to keep interest rates near zero.