Gold prices are driven down by the strong dollar and by the end of the week may show the largest decline since mid-December.

The dollar rose to a maximum of nine months against the yen and rose against the euro, putting pressure on gold, the price of which usually varies inversely proportional to the dollar.

Reflecting investors' gold reserves of the world's largest secured precious metals ETF fund exceeded 70.76 million ounces, reaching an absolute maximum.

Isolation of the European Central Bank loans to low-cost 500 billion euros this week will support gold in the long run, as will help to keep interest rates in the eurozone, analysts say. On Friday, gold prices in euros rose by 0.4 percent to EUR 1.294,23 per ounce, but by the end of the week may be reduced by 1.8 percent.

March futures of gold on COMEX today fell to 1705.2 dollars per ounce.