Gold lost some of its shine this morning, as the precious metal's price fell four per cent to as low as $1,088.05 (£697) an ounce during early trading in Asia – its lowest level since March 2010.
Additionally, the price of platinum dropped five per cent in its weakest trade since the global financial crisis.
The drop was caused by increased confidence in the US economy. The dollar has become a more attractive prospect for investment due to the heightened chance of the Federal Reserve raising interest rates in the near future. Last week, Janet Yellen, head of the US central bank, reiterated her intention to raise rates before the end of the year.
The drop in value comes despite China's announcement on Friday that its gold reserves were up 57 per cent at the end of June compared to six months ago.
Gold is seen as a safer option to put money into when currencies and equities are volatile and inflation is low, but when markets are steady the commodity's future looks less bright.
In recent years, bitcoin has also emerged as a preferred option during times of economic uncertainty. The digital currency has risen from less than £16 per Bitcoin in May 2011 to £178 per bitcoin today.
Jameel Ahmad, chief market analyst at FXTM, said:
Despite all the Greece uncertainty, we saw a complete lack of buying interest towards Gold and I believe this spelled out to investors that there is much hesitation to purchase gold as we approach the timing of a US interest rate rise and consequently inspired further bearish momentum.
Bad news for gold miners
Across the world, gold-mining companies lost out. Shares in Australia-listed Evolution Mining and Regis Revolution fell by 13 per cent, while shares in Regis Resources, Northern Star Resources and Newcrest Mining all went down by more than eight per cent.
London-listed gold mining firms also fared badly in Monday morning trading, with shares in Randgold Resources and Frensillo falling by 2.4 per cent and 2.2 per cent, respectively.