The selling of gold holdings and consequent significant price fall comes following a general stock market fall over a prolonged period of time coupled by a widespread pessimism, creating a bear market – loosely represented by a 20% or more fall from price peak.
The Telegraph reported that at one point on Monday, the price dropped more then $30 in minutes.
Wider commodity prices have also taken a hit after China announced weaker than expected economic growth, igniting concerns about the overall global economy.
