Gold has fallen below $1,200, its lowest level in three years, after the US Federal Reserve said it will wind down its stimulus programme.
Gold fell to $1,191.21 an ounce in Asia trade, breaching the $1,200 mark for the first time since August 2010.
Fed chairman Ben Bernanke last week said bond purchases will start to 'taper off' later this year as the economy recovers.
Analysts said investors had been anticipating further price falls.
As a result there was a sell-off, resulting in a big drop in prices in recent days. Some expect the precious commodity to fall as low as $1,000.
"You don't want to catch a falling knife, so people who might be buyers are stepping aside and don't want to show gold at their quarter-end statement," said Axel Merk, chief investment officer at Merk Funds.
Gold, which is generally considered a safe haven, has been hit by anticipation interest rates will rise.
Mr Bernanke last week indicated that the Fed will begin to end its $85bn-a month bond purchases, which are designed to lower long-term interest rates.
Markets saw a dramatic sell-off over the past week after Mr Bernanke said that the central bank could begin paring its bond purchases by the end of 2013 and wind them down completely by the middle of 2014.
Source: BBC News - Business http://www.bbc.co.uk/news/business-23093548#sa-ns_mchannel=rss&ns_source=PublicRSS20-sa
