Gold at multi-year low- various reasons weigh

ECB's monetary policy is likely to be eased ahead and gold slipped down $1050 per troy ounce to reach its lowest level since Feb 2010. 

Gold was temporarily trading at 2.5 month low in Euro terms under 990 EUR this morning. There are probably a number of reasons for this, like November inflation rate in Eurozone was merely 0.1%. 

There will be less demand for gold, given low inflation rate. Another reason might be better economic figures published in US again, which caused USD to surge, which might also weigh on gold price

When inflation is low, there is less demand for gold as a store of value. For another thing, better economic figures were published in the US again yesterday; this caused the US dollar to appreciate, which likewise weighed on the gold price. 

Substantial ETF outflows also weighed on Gold, which reduced by over 16 tons yesterday, constituting the highest daily outflow since May 2013. The sources of Finance Ministry of India reported that gold imports reaches 101 tons in November, although it was twice in October, it was only half of November's level.

"If ECB President Draghi announces "QE2" as expected, this is likely to lend buoyancy to the gold price, especially in euros", says Commerzbank in a research note.