GOLD prices steadied today as the precious metal made a weak comeback after its steepest tumble since the early 1980s. Panic selling sent gold plunging to a two-year low of 1,350 US dollars an ounce yesterday - with the fall since Friday the biggest two-day decline since 1983. Investors dumped the precious metal - typically used to protect against rising inflation - amid speculation that the US Federal Reserve will call time on its quantitative easing (QE) programme. Combined with weaker-than-expected output figures from China's economy, the falling gold price dragged down listed miners and other commodity prices, with Brent crude oil yesterday falling to a nine-month low of around 100 US dollars per barrel. Fears that battered European economies may follow Cyprus in selling some of their gold reserves to pay off debts also panicked markets. But gold prices edged up to 1,382 US dollars an ounce today, with some investors spotting a buying opportunity. David White, financial trader at Spreadex, said: "At some point gold could well be subjected to participants looking to own gold at cheaper levels than over the last few months. "But, critically, calling the bottom on any such process is hazardous at best. "Don't be fooled, this is a particularly dangerous market currently." The scale of gold's tumble sparked talk that the precious metal's decade-long bull run has run out of steam. Its safe haven status drove gold to an all-time high of 1,920 US dollars an ounce in September 2011, as investors bought into the metal to protect against bank failures, sovereign debt defaults and soaring inflation eroding cash investments. Investors sought gold's relative safety amid fears major QE or asset purchase programmes by the US Fed, the Bank of England and other central banks would send prices soaring and erode the purchasing power of cash. But gold has since lost ground amid signs of partial stability in the eurozone and economic recovery in the US, which could prompt the Fed to wind down its QE programme.

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