Gold came under pressure on Monday, falling by as much as 2.0 percent after breaching a crucial level of support, as concern over the euro zone debt crisis encouraged investors to seek safety in the form of the U.S. dollar rather than bullion.
Spot gold was last down 1.7 percent on the day at $1,681.74 an ounce at 1007 GMT, having fallen to a low of $1,676.29 an ounce, its lowest since Nov. 25.
Traders and analysts said the break below $1,680 an ounce, the location of the uptrend that has been in place since the start of the year, accelerated the decline that was already in place given the near-0.8 percent rise in the dollar against a basket of major currencies.
Dollar strength tends to encourage non-U.S. investors to sell gold to lock in a higher profit in their own currencies.
