Gold’s woes continued Friday when its price slump hit a five-and-a-half year with analysts warning that the precious metal could plunge far faster than recently forecast and hit the $1,000 mark in just a few weeks.
Prices have come under pressure recently and are down around 5.4 percent in the last seven days. On Friday, spot gold hit a low of $1,077 an ounce and was trading down around $1,079.6 by mid-afternoon.
And analysts are seeing further pain for gold to come in the short-term.
“I think we see more of a downtrend particularly over the next couple of months ahead of the market speculation of a September rate hike in the U.S., so I think you can easily see prices over the next two months breaching below $1,000 round level,” David Wilson, director of metals research and strategy at Citi, told CNBC in a TV interview.