Gold prices have fallen below $US2000 ($2783.08) to $US1911.25 an ounce overnight, marking the greatest fall since June 2013.
The yellow metal dropped by $US116 overnight, with the price slump coming less than two weeks since reaching its recent high spot price of $US2009.50.
At the time of writing, CNBC has seen a slight gain to gold’s price to $1922.28.
According to Reuters, most analysts predict a positive outcome for the metal after gaining 31 per cent this year due to COVID-19’s impact on bank interest rates, which have driven investors to gold as a hedge against potential inflation.
StoneX analyst Rhona O’Connell told Reuters that gold had been overbought in recent times.
“The retreat was inevitable,” she said.
Australian gold miner Evolution Mining has faced a 7.69 per cent drop to $5.40 on the Australian Securities Exchange today, while Kirkland Lake Gold saw a 6.18 per cent decrease to $67.10.
Early this month, Edison Group analyst Charles Gibson said US gold prices had the potential to rise to $US3000 per ounce.
“Gold, with its safe haven and monetary status has been an obvious beneficiary of the current uncertain environment,” Gibson said.
“That seems unlikely to change for long as the coronavirus remains a largely unknown quantity.”