Gold prices fell to a week low amid falling oil prices, inflation threatening. The cost of oil futures had fallen to four-year low after OPEC's decision not to cut production in order to stabilize the market.

"Quotes of precious metals are reduced because cheap oil threatens deflation," - said analyst Victor Tyanpiriya ANZ.

Dollar exchange rate increases relative to the currencies of commodity producers, also preventing increase of quotations of gold.

"Gold is moving in the same direction with the oil, but I think that the fall will stop at at $ 1,180," - said a trader in Tokyo, recalling the referendum in Switzerland on Sunday.

In a referendum would be considered a proposal to ban the country's central bank to sell gold reserves and oblige him to keep at least 20 percent of assets in gold, compared with 8 percent in October. According to a recent survey, the proposal is 38 percent of the Swiss, but if the result of the vote will be positive, the central bank will need in the coming years to buy 1,500 tons of gold, which will cause a rise in prices, experts say.

Gold prices are likely to remain vulnerable in the short term amid signs that the strengthening of the US economic recovery will push the Fed to more rapid and sharp increase in interest rates than expected.

Expectations of growth rates on loans put pressure on gold as a precious metal with difficulty competing with the yield of interest-earning assets at higher rates.

The cost of the December gold futures on the COMEX today fell to 1184.70 dollars per ounce.