Gold edges off 4-month high but haven appeal lends support

LONDON, Jan 19 (Reuters): Gold edged lower on Monday as investors cashed in some of the previous week's hefty gains, but prices remained near four-month highs as volatility in the wider markets boosted the metal's appeal as a haven from risk.
A market rout after Switzerland unexpectedly abandoned a cap on the franc last week triggered strong bids for gold, often seen as an alternative to risky assets. That sent prices to their highest since September at $1,281.50 on Friday.
While it retreated on Monday, it remained supported near that peak as the market braced for further volatility in a critical week in the euro zone, traders said.
Expectations are high that the European Central Bank will unveil a bond-buying stimulus package at a policy meeting on Thursday, while the anti-bailout party Syriza maintains a lead in the polls going into Greece's general election on Sunday.