Gold sank more than 2pc yesterday to its lowest since mid-2010, potentially opening the way for a fall to $1,000 as a surging dollar and stronger share prices weakened the investment case for non-yielding bullion.
Silver’s fall of around 5 percent was even sharper, with the metal hitting 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 $1,146.40 by 1538 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 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.
Silver fell as much as 5 percent to a 4-1/2 year low of $15.13 an ounce, and was down 4.6 percent at $15.25 in late afternoon business.
