Gold on Monday declined towards a 20—month low as prospects that the US Federal Reserve will reduce monetary stimulus curbed demand for a protection of wealth.
Gold fell 0.9 per cent to $1,285.05 an ounce. Prices slipped 6.8 per cent last week. Silver slid 1.8 per cent to $19.75 an ounce, the lowest since September 2010.
Gold fell to $1,269.46 on June 21, the lowest since September 2010, after Fed Chairman Ben S Bernanke said the central bank, which buys $ 85 billion of Treasury and mortgage debt a month, may trim stimulus this year and end the program in 2014 should the economy continue to improve.