Gold prices fell more than 1 percent to their lowest in nearly a month on Tuesday, with uncertainty over stalled U.S. budget negotiations denting investor fervor for the metal.
Dealers say confidence in gold has been eroded by memories of last December's 10 percent price slide and disappointment that prices failed to break $1,800 an ounce when the United States announced a third round of monetary easing in September.
Spot gold fell as low as $1,690.64 an ounce and was down more than a percent below $1,697 an ounce in late morning trading, while most-active U.S. futures contract were down 1.2 percent at $1,700.10, having earlier dropped to a near one-month low of $1,692.60.
That said, how are you playing gold — buying or selling? Vote now in our "Futures Now" poll!
— Reuters contributed to this report