Gold declined by the most in a week as a European Central Bank plan to expand the scope of its stimulus program helped boost the dollar and global equities, reducing demand for the metal as an alternative asset.

U.S. and European stock markets rallied and the euro fell to a two-week low after ECB President Mario Draghi signaled that policy makers are able to increase stimulus to counter the risk of slower growth. The Bloomberg Dollar Spot Index rose to the highest since Aug. 12.

Gold futures for December delivery declined 0.8 percent to settle at $1,124.50 an ounce at 1:42 p.m. on the Comex in New York, the biggest drop since Aug. 26. Prices slipped 0.5 percent yesterday.

Holdings in exchange-traded products backed by gold fell 0.9 metric ton to 1,520.5 tons as of Wednesday, according to data compiled by Bloomberg. Assets are near the lowest since 2009.

Silver futures for December delivery added 0.3 percent to $14.707 an ounce on the Comex.

Source: Bloomberg