Now, stock markets around the globe, particularly US and Japan have revived, people are looking at equities and dollar to kept optimal returns.
Even the rising tensions on the Korean Peninsula have failed to ignite any rally in gold. In fact, one reason for the heavy decline in gold is the strong economic data from the US, which is forcing investors to back equities.
Precious-metals shine more during the times of uncertainties but one should also keep in mind their inverse relationship with US Dollar. There were also unconfimed reports and talks of gold liquidation by the European Central Bank.
Overseas gold prices which touched US $1,900 an ounce last year, plummeted to the level of $1,367 an ounce witnessing a weak investor sentiments.
There is a panic selling, investors are dumping gold as fears persist over bank sales and global growth.
Sudden swings in gold prices have tarnished its reputation as a safe haven, and bullion has moved in tandem with riskier assets.
Silver also slipped tracking gold. One has to wait and watch until the panic selling stops. Also, read what expert views on whether you should buy gold now.