Hello!

There are three main reasons for the recent decline in gold:

First, because the Cyprus government sold off the central bank’s gold reserves in order to raise funds, the price of gold was under pressure.

Second, Commerzbank and other major institutions lowered their expected gold prices in 2013, which also put strong pressure on gold prices. This lowering of expected prices also led to a sharp decline in the world's largest gold fund ETF. Holding gold will put a great pressure on the price of gold.

Third, and this is the essence of this drop in gold prices, due to the recent improvement in the U.S. economic situation and the continuous improvement in the job market, Federal Reserve Chairman Bernanke made two statements last week. The speech hinted at the possibility of exiting QE3, so this is the main reason for the downward pressure on gold prices.

Affected by the sharp decline in international gold prices, the price of physical gold also fell sharply.

Hope it helps!