Gold prices have been declining since the six-week high, as the pressure on the euro intensified after the collapse of talks with European finance ministers of Greece by private lenders.

Eurozone Finance Ministers on Monday rejected the offer of private bond holders on restructuring the debt of Greece, increasing the probability of default. Earlier Tuesday, the euro rose to a three-week high against the dollar and the four-week peak of the pound.

During December gold has fallen in price by 10 percent, as investors chose to cash it.

At the same time, the World Gold Council suggests that the central bank buying of gold reached a record in 2012.

China ranks second in world consumption of gold, does not participate in the auction,since the new year marks the lunar calendar, and the activity of buyers in the largest consumer of India fell after the increase in import duties on gold is almost twice last week.

Cost of the February gold futures on the COMEX today dropped to 1661.0 dollars per ounce.