Gold retreated to $1,220.00 (-1.57%) extending Friday's declines as European stocks rose on strong retail sales data.

Analysts also note some profit-taking. The price of the precious metal is about $60 an ounce higher than February 5 before Chinese markets closed for a holiday. Now investors might wish to take profits.

Holdings of SPDR Gold Trust, the largest gold-backed exchange-traded-fund, fell by 0.71% to 710.95 tonnes on Friday.