Gold drifted lower on Monday after posting its biggest quarterly rise in more than two years, tracking a weaker euro as Spain's struggle to control its finances remained in focus.
Fundamentals
* Spot gold had lost 0.3 percent to $1,764.69 an ounce by 0033 GMT, after finishing the last quarter up nearly 11 percent -- its biggest quarterly rise since the second quarter of 2010.
* US gold fell 0.4 percent to $1,767.30.
* Hedge funds and money managers raised their gold future positions to their most bullish in almost seven months in the week ended September 25, as investors expecting continued monetary stimulus from major central banks sought a hedge against inflation.
* Spain's debt levels are set to rise next year, piling pressure on the government to apply for aid as it pours funds into cash-strapped regions, an ailing banking system and rising refinancing costs, its budget showed on Saturday.
* France unveiled an austerity budget that would tax business and the super rich.
* September sales of US American Eagle gold coins are set to be the lowest since 2007, but central banks' monetary stimulus and economic uncertainty could rekindle interest from retail investors in the fourth quarter, dealers said.
* A U.S. judge knocked back on Friday tough new rules to clamp down on excessive speculation in commodity markets, handing an 11th-hour victory to Wall Street's biggest banks and angering lawmakers concerned about high prices for gasoline and other raw materials.
* Markets in China and Hong Kong are shut on Monday for a public holiday. China will remain closed for the rest of the week for the National Day holiday.
