Gold futures on the COMEX Division of the New York Mercantile Exchange closed lower on Monday, in the fourth straight settlement below 1,600 dollars per ounce, as a stronger U.S. dollar pared the metal's appeal as an alternative investment.

The most active gold contract for February delivery declined 1. 2 U.S. dollars, or 0.08 percent, to 1,596.7 dollars per ounce.

Market analysts said that although gold earlier found some support from the latest situation on the Korean Peninsula, which helped buoy the safe-haven demand for the precious metal, it finally lost its ground as the dollar rallied against the euro amid continued concerns over the economic situation in the European Union.

European Central Bank (ECB) President Mario Draghi on Monday sounded a warning on the economic outlook for eurozone countries and downplayed the ECB's role in tackling the debt crisis, contributing to weakness in the U.S. stocks and the dollar's strength.

The dollar index, which gauges the value of the dollar against six other currencies, on Monday hiked 0.14 percent from the prior trading day to around 80.37. The price of gold usually goes opposite of that of the dollar.

Gold fell below the key mark of 1,600 dollars per ounce on Dec. 14 and dropped 6.9 percent for the whole of last week, the biggest weekly drop since the week ended Sept. 23.

Silver for March delivery shed 79.7 cents, or 2.7 percent, to 28.874 dollars per ounce. Platinum for January delivery dropped 3. 7 dollars, or 0.3 percent, to 1,413.6 dollars per ounce.