Traders, though, have not been keen to catch the falling knife as the markets waits for the December Federal Reserve announcement. Many speculate the Fed will hike interest rates for the first time in almost a decade next month. In a rising rate environment, gold becomes less attractive to other assets since it does not pay interest and costs money to hold.

Looking ahead, gold traders will be waiting on the December 4 U.S. employment report, which should give an idea on how the Fed will act.

Meanwhile, the emerging markets, which have been a large source of increased gold demand,

SPDR Gold Shares

Source: Yahoo! Finance

For more information on the gold market, visit our gold category.

Max Chen contributed to this article.