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.
Find out about commodities trading and learn CFD strategies at City Index
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.