The gold price has fallen to its lowest in more than five years as talk of a US interest rate rise this year has led investors to sell the precious metal.
The price fell 4% to as low as $1,088.05 (£697) an ounce in Asian trade – the lowest since March 2010.
Investors turned to the US dollar, which rose on the likelihood of the Federal Reserve raising rates because of a stronger US economy.
Investors generally buy gold during times of uncertainty.
Monday was the first time the metal has traded below the key threshold level of $1,100 since 26 March 2010.
The price of platinum also fell 5% to its weakest since the global financial crisis.
Evan Lucas, a market strategist at trading firm IG, said the recent slump in gold prices could signal a “retracement” to $1,000 an ounce by the end of the year.
“There are no clear signs (or reason) to buy it. It is an inert metal that is a store of value yet inflation is heading nowhere and investment in the US dollar and bonds is clearly more appealing,” he told the BBC.
China’s reserves rise
The price fall comes despite China, the world’s biggest consumer of gold, saying on Friday that its gold reserves were up 57% at the end of June compared with the last time it revealed reserve figures, more than six years ago.
But the rise was below analysts’ expectations. Gold now accounts for 1.65% of China’s total foreign exchange reserves, compared with 1.8% in June 2009, despite the increase in tonnage.
Gold has been falling out of favour as the dollar strengthened last week after Fed chair Janet Yellen reiterated the view that the central bank was on track to rise rates this year.
Shares of Australian gold miners in Sydney were hit hard by the fall in prices.
Shares in Evolution Mining were down more than 13% in early trade, while Regis Resources, Northern Star Resources and Newcrest Mining were all down by more than 8%.