Gold prices fell for a second day pulling back from Tuesday's strong gains currently quoted at USD1,220.70 or -0,38% a troy ounce as equity markets rebounded and concerns over political instability in Greece and restrictions on China's debt markets were shrugged off. As the ECB's second round of TLTRO was well accepted expectations for a quantitative easing lowered. Markets await key U.S. data on retail sales and initial jobless claims later in the session at 13:30 GMT.

Despite recent gains the metal is likely to remain vulnerable in the short term amid signs that the strengthening of the US economic recovery may prompt the Federal Reserve to start raising interest rates sooner than expected.

GOLD currently trading at USD1,226.30