Gold prices are stable, as traders remained cautious ahead of a meeting of leaders of France and Germany on the problems of the eurozone. It was expected that at today's meeting, German Chancellor Angela Merkel and French President Nicolas Sarkozy,specify a new set of rules of financial discipline discussed at the summit on December 9. As per the last meeting, German Chancellor Angela Merkel said that negotiations on the fiscal pact. Merkel also noted the need for a fiscal pact included measures to stimulate economic growth. In turn, French President Nicolas Sarkozy pledged that France's budget deficit in 2011 will be lower than expected.

Although gold has fallen in price by 10 percent in December, a record-low interest rate sand concerns about the level of debt and economic growth are supporting prices.

February gold in electronic trading on the New York Stock Exchange on Comex fell to1605.7 dollars per troy ounce.