Gold prices took a dramatic U-turn on Monday, reversing early gains to drop to a two-year trough after bullion futures fell on fears about central bank sales and holdings on global.exchange-traded funds sank to their lowest in more than a year.
A dip below the psychological $1,500 an ounce level initially sparked bargain hunting, but stoploss selling took over after oil futures slipped and as investors bet the US Federal Reserve would soon end its bullion-friendly bond buying programme.
Gold hit an intraday high at $1,495.16 an ounce, but then plunged to $1,427.14, its lowest since
April 2011. It stood at $1,441.69 by 0335 GMT, down $36.66, and the metal has slipped around 14 per cent so far this year, after rising for the last 12 years. US futures for June delivery extended losses to fall more than 5 per cent as Tokyo gold futures tumbled around 8 per cent, marking Japanese futures biggest daily fall since September 2011.Other precious metals were also hit by heavy selling, with silver falling to its lowest since
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