Gold loses its luster as dollar rises

Investors just keep bailing on gold.

In December, $2.27 billion was pulled out of SPDR Gold Shares, the world's largest exchange-traded fund backed by the metal. That was a third straight monthly loss and the biggest since May 2013. Money managers have also turned less bullish on bullion, cutting their net-long positions for a seventh straight week to the smallest since February, US government data showed.

Bullion lost favor at the end of last year, posting the worst quarterly loss since June 2013 as equities rallied and the dollar gained amid improving global growth prospects and increasing odds that the Federal Reserve will keep boosting US interest rates this year. That's hurt the investment appeal of gold because it doesn't pay investors yields or dividends.