Gold fell 1 per cent yesterday as a short-covering rally that boosted prices from 4-1/2-year lows lost steam, with buyers wary that rising stock markets, upbeat US data and softening investment flows would spell further falls.
The metal rebounded from a low of $1,131.85 an ounce on Friday after US payrolls data marginally missed expectations to jump 3.1pc, their biggest one-day rise since June 19.
That move petered out early on Monday.