Gold today fell to the lowest level in more than 2-1/2 years after US Federal Reserve Chairman Ben S Bernanke said asset purchases may be reduced later this year as the US economy recovers.
Gold dropped 3.4 per cent to $1,304.75 an ounce, its lowest since September 30, 2010.
Silver also fell 6.2 per cent to $20.08 an ounce, the cheapest since September 14, 2010.
Bernanke said the central bank, which currently buys $85 billion of Treasury and mortgage debt each month, may begin reducing purchases this year and end the programme in 2014 should the economy continue to improve.