Gold prices fell to a three-year low on Thursday plummeting 200 dollars per troy ounce in just 10 days.
The precious metal sank 2 percent on Thursday to breach below the 1,200 dollar mark in New York for the first time since August 2010. But have since rebounded just a tad in Asia trading today.
Gold is down nearly 28 percent year to date and is headed for a 25 percent loss for Q2, its biggest quarterly decline since 1968.
Gold has declined sharply since Fed Chairman Ben Bernanke said last week the U.S. central bank plans to start scaling back its 85 billion dollar monthly bond purchases in the next few months.
Analysts say that would drive up interest rates, making gold less attractive as a safe haven for funds in a low-rate environment.