Gold fell more than 1 percent to a five-year low on Wednesday as a bounce in the dollar fueled downside momentum, with investors continuing to pull away from the metal after its dramatic slide earlier this week.
A looming increase in U.S. interest rates, the first in nearly a decade, has diminished gold's appeal to investors, encouraging more sellers in the market after Monday's 3 percent rout, the biggest one-day drop since September 2013.
Holdings in the world's biggest gold-backed exchange-traded fund, SPDR Gold Shares, fell for a fourth day on Tuesday by another 4.8 tons, the least since 2008. Its reserves have nearly halved from their 2012 peak.
Gold is down more than 6 percent over the last 10 sessions and Wednesday is the first time futures settled below $1,100 since March 25, 2010. This is gold's longest losing streak since the 13-session streak in Sept. 1996.