The valuable metal tumbled to $1,072.35 in Asian arrangements, striking the most reduced point subsequent to February 11, 2010, and breaking the key mental obstruction of $1,100.
"The value slide was activated by high offering volumes on the gold trade in Shanghai," said Commerzbank examiners in an exploration note to customers.
Merchant Scratch Ascended, at exchanging firm TradeNext, concurred that the most recent value droop was started by Chinese venders offloading huge amounts of the metal.
Gold had as of now slid on Friday on the back of the solid dollar, which took off a week ago after US Central bank boss Janet Yellen reaffirmed desires of a premium rate climb by year-end.
A more grounded greenback makes dollar-named products more costly for purchasers utilizing weaker monetary forms. That has a tendency to imprint request and, thusly, force costs lower.
Costs were hit Friday by news that China's official gold stores climbed very nearly 60 percent in the course of recent years, as indicated by the first authority information on the subject subsequent to 2009.
The focal Individuals' Bank of China (PBoC) said bullion possessions climbed 57 percent to 1,658 tons as of the end of June, from 1,054 tons in April 2009, the last time a figure was discharged.
"Markets have initiated the week with a surprising begin taking after a marvelous drop in gold amid the Asian session that sent the yellow metal to another point of reference five-year low," included examiner Jameel Ahmad at merchants FXTM on Monday.
"Gold dropping so forcefully is an astonishment keeping in mind the reports that China gold stores were a large portion of the normal level may have motivated extra offering weight, it is the rehashed remarks of duty from the Central bank that they will start raising US premium rates sooner or in the not so distant future that have consistently compelled gold as of late."
Different valuable metals additionally fashioned multi-year lows on Monday.
Silver plunged to $14.54 per ounce, the most minimal level in about six years.
Platinum sank to a six-year trough at $946.25 an ounce, while sister metal palladium slid to $603.95 per ounce — keep going saw on November 11, 2012.