Gold fell nearly 3 percent Thursday morning to a four-week low, dipping to $1325.60 an ounce.
Analysts and traders say technical momentum prompted further selling after gold broke below its 100-day moving average (around $1,359.) Also, anticipation of a possible announcement about the Fed's reduction in its bond buying program has added to the selloff.
"It's pre-emptive selling," said HSBC analyst Jim Steel. "No one knows what the Fed is going to do, but just in case, they're selling."