Gold sank about 2 percent on Wednesday to its lowest since mid-2010, potentially opening the way for a fall to $1,000 as a surging U.S. dollar weakened the investment case for non-yielding bullion.
Silver’s fall as much as 5 percent to its weakest since February 2010 at just above $15 an ounce.
Spot gold skidded to its lowest since April 2010 at $1,137.40 an ounce and was trading down 1.8 percent at $1,146.50 by 2:48 p.m. EST (1948 GMT).
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 level.
U.S. COMEX gold futures settled down $22 an ounce at $1,145.70. Trading volume was about 270,000 lots, nearly doubling its 30-day average, and set to the highest turnover since Friday, preliminary Reuters data shows.
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.
Silver was down 3.6 percent at $15.43 in late afternoon business, paring losses after hitting $15.13, its lowest since mid-2010.
Source : Reuters