Gold tumbles 4 per cent to 5-year low, platinum also knocked

Gold plunged 4 per cent to its lowest in more than five years on Monday with platinum also sinking 5 per cent to its weakest since 2009 as investors sold off precious metals.

It was a sudden, massive drop for gold and platinum prices which had breached critical support levels since Friday as the dollar strengthened on growing expectations that the Federal Reserve will hike interest rates this year.

Spot gold was down 2.8 per cent at $1,102.40 an ounce by 7:20 am after falling as far as $1,088.05, the lowest since March 2010.

Platinum lost as much as 5 per cent to $942.49 an ounce, its weakest since February 2009.

(Reuters)