Gold retreated on Thursday as the dollar rebounded and some investors locked in profits.

Iron ore and steel prices in China hit multi-month highs in January as markets rallied from early November.

The Japanese trading house said reasons for offloading its interest in the Canadian mine included unstable operations, declining grades and increased risk of environmental liabilities.

“We believe that the early January direction is correct but that the timing is slightly off,” said Saxo Bank.

Analysts are cautious that China's recovery may not live up to bullish expectations and that prices have got ahead of themselves.

The figures are lower than the $99 per tonne paid in the October-December quarter and mark a fifth consecutive quarterly decline.

Toronto-based Yamana inked a deal with the two miners after South Africa’s Gold Fields waived its right to match the rival bid.

Yamana shareholders have endorsed a $4.8 billion deal that sees Agnico consolidate the Canadian Malartic mine.