Gold fell in thin holiday trade on Monday, heading for its biggest annual loss in more than three decades at nearly 30 percent, as rising appetite for risk and the prospect of a global recovery tarnished its allure. 

European stocks hovered around five-year highs after two weeks of strong gains, following from a six-year peak in Japanese shares.

 

"What's currently driving investors is the idea that commodities are out of fashion and equities are in demand," Quantitative Commodity Research owner Peter Fertig said.