Gold sunk below $1,150 per ounce on Wednesday to its lowest since mid-2010, opening the way for a fall to $1,000 as a surging dollar and stronger share prices weaken the investment case for non-yielding bullion.
Silver fell even harder to hit its cheapest since February 2010 at just above $15 an ounce.
Spot gold, which skidded to its lowest since April 2010 at $1,143.66 an ounce, was trading down 2 percent at $1,145.05.
Technical analysts said a test of the $1,000 level could be on the cards following a break of support at $1,150 an ounce, a key retracement of gold’s rally from its 2008 lows to its September 2011 record high at $1,920.30.
The metal has lost around $100 an ounce over the past week, rekindling memories of a stunning two-day drop last year that started a huge wave of divestment and a surprise double-digit annual price dive after 12 years of gains.