Gold dropped 6 percent on Monday to below $1,400 per ounce, its lowest since March 2011, as investors took fright at a market that is heading for its biggest two-day fall in 30 years.

Gold has capitulated in the last two trading days to pressure from a proposed sale of Cypriot gold holdings and concern that other nations might follow suit. Traders also cited concern that the U.S. Federal Reserve might reduce monetary stimulus towards the end of the year..

“You can’t stand in front of a steam train – the market has to run itself out and then I think you will see some meaningful correction towards the $1,510-$1,525 level,” said Gerhard Max Schubert, head of commodities at Emirates NBD bank in Dubai.

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