SAN FRANCISCO (MarketWatch)—Gold prices extended losses for a second session Thursday, continuing to feel pressure from news that a proposal which could require the Swiss central bank to ramp up its holdings in bullion is losing support.

Gold for December delivery GCZ24, fell $3 to settle at $1,190.90 an ounce, reducing an earlier loss that saw it down as much as $16. December silver US:SIZ4 was off 16 cents to $16.14 an ounce. When interest rates rise, demand for gold weakens since it does not pay interest.