Wholesale market gold bullion prices dipped below $1550 an ounce for the first time since December on Tuesday – a fall of 7% since the start of this month – before regaining some ground by lunchtime in London.
"The bear channel support had been at $1581," say technical analysts at Scotia Mocatta, the bullion banking division of Bank of Nova Scotia.
"The next target is a full retracement to December's low of $1522 and there does not appear to be much standing in the way."
"Gold bugs [are] hiding deep in their gold caves pondering why gold isn't rallying in spite of [the] sharp spike in risk-off sentiment," said NYU professor Nouriel Roubini on Monday via the medium of Twitter.
Asian dealers however report a pickup in physical gold bullion demand.
"At the moment supply is a bit tight for immediate delivery," one Singapore dealer tells news agency Reuters.
"Refiners can't deliver immediate gold because there's a sudden surge in demand. We're seeing demand from India, Thailand and Indonesia."