Gold got whacked in the Asian trading session on Monday, plunging below $1,100 in for the first time since March 2010, and strategists say the precious metal is only headed lower from here.
The precious metal's latest leg down was reportedly triggered by speculative selling in the Shanghai Gold Exchange, catching investors off guard.
"It was down to speculation here, someone taking advantage of the low liquidity environment," Victor Thianpiriya, commodity strategist at ANZ, told CNBC. "Around 5 tonnes of gold was sold on the Shanghai Gold Exchange within the space of two minutes between 09:29 and 09:30. The daily volume last week was about 25 tonnes," he noted.
Gold slid over 4 percent to as low as $1,086 an ounce in early trade on Monday, before paring back some losses over the course of the day. It was down 2.3 percent at $1,107 at around 12:00 SG/HK time.
"It clearly wasn't driven by fundamentals, because the U.S. dollar didn't move at that time," Thianpiriya said.