Gold drops to 34-month low

<p>Gold is continuing to lose value quickly.</p>

The value of gold is still slipping and has now dropped to its lowest level in 34 months.

It remains on course for its record quarterly drop as the commodity loses its reputation as one of the top safe havens in times of economic uncertainty.

Gold has already fallen by 23 per cent in this quarter alone, according to a report by Bloomberg, with the precious metal closing in on its biggest loss since at least 1920 in London.

"The selloff is a continuation of the response to concerns over the Fed tapering stimulus," said Bart Melek, the head of commodity strategy at TD Securities in Toronto.

US Federal Reserve Ben Bernanke announced last week that the asset purchasing scheme could be wound down next year as long as the country's economic recovery remains on track.

Gold prices have had a knock-on impact around the world and a recent report by the Hindu noted how real estate in India has been affected by the precious metal shedding value in 2013.

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