Gold prices decline after ratings agency Standard & Poor's raised the outlook of the U.S. rating to stable, reducing the appeal of gold as a safe asset.

Global financial markets are under pressure after Federal Reserve Chairman Ben Bernanke said in May that the central bank may cut the program of buying bonds at a future meeting when saving features to strengthen the U.S. economy. However, the president of the Federal Reserve Bank of St. Louis James Bullard said on Monday that high inflation allows the Fed to continue buying bonds in full.

The demand in the physical market is reduced from a peak of April, when the spot price fell to a minimum of two years $ 1.321,35. Dealers in Singapore reported decreased deficit gold bars and coins.

Stocks of the world's largest exchange-traded fund backed by gold (ETF) SPDR Gold Trust on Monday, rose 0.3 percent to 1.009,85 tons, but still close to a minimum of four years.

The cost of the August gold futures on COMEX today dropped to 1364.5 dollars per ounce.