Gold is taking a pounding on the back of optimism in a US Federal Reserve rate hike.
The metal has fallen to a five year low, as the probability rises of the first US interest rate rise since 2006, according to Bloomberg.
The likelihood rose from 72 per cent to 74 per cent on Friday, encouraging investors to back the US dollar and securities due to its more positive yield compared to gold.
Gold is typically valued as a store of value during times of economic uncertainty, so stronger global GDP growth has a negative effect on the metal, which only regains demand strength during Indian wedding season.
The price for February gold futures settled at US$1056.20 per ounce after tumbling to US$1051.60 earlier that day, while bullion for immediate delivery dropped to US$1064.83 marking the likelihood of six straight weeks of losses.
Gold has now fallen close to US$100 in the space of a month.
This decline is likely to continue, with IBISWorld forecasting global economic performance to improve at a relatively strong rate over 2015-16, “which is likely to place downward pressure on demand for gold over the year.”
These current market conditions are making close to one in ten gold mines currenly uneconomical.
Earlier this year the Bank of America forecast a weakening gold price, predicting that it will likely fall below US$1000 an ounce next year, a level it is already tettering dangerously close to.