Gold prices fell by 1%, as the dollar strengthened and stock markets began to fall. Also on such dynamics affect lowering the rating agency Moody's credit rating of five Spanish regions and weak corporate reports from DuPont, United Technologies and Caterpillar.

The pressure from the weakness in gold stocks has caused prices to drop to six-week low of $ 1,705.60 an ounce. If the crash continues and further that this month will be the first to be negative for gold in the past five months.

Spot gold prices fell by 1.1% to $ 1,708.60 an ounce, while U.S. gold futures for December delivery fell $ 11.50 an ounce to $ 1,714.80.

Now the focus is on meeting the U.S. Federal Reserve in Washington, which will be held today and tomorrow. While the Fed does not expect the adoption of incentives in the past month, with the remarks at the meeting will be watching more closely, to get clues as to the future direction of policy.

From a technical point of view, analysts who study past price patterns to predict the future direction of the claim that a sufficiently strong support level is the psychological level of $ 1,700 an ounce.

Note also that in India - historically the world's largest consumer of bullion, demand has grown as prices have fallen in anticipation of the planned festival, which is considered as an auspicious time to buy gold.

The data also showed that the inflow of gold in exchange-traded funds, which issue securities backed by physical metal was about 112,223 ounces on Monday, with the bulk of inflows accounted for the SPDR Trust.

November futures price of gold on COMEX today fell $14.30 and is now 1711.00 an ounce.