Gold price hits a 33-month low

The price of Gold falls to its lowest in almost three years on Wednesday, and is on course for a record quarterly loss after US data reinforeced expectations for an end to ultra-loose monetary policy. In earlier trading, COMEX Gold hit below the 1230 dollars level.

The Gold price has dropped more than 20 percent this year, and hit a near three-year low on Wednesday. It's believed that the decline was pressured by strong US economic data that boosted stock markets and supported the US Federal Reserve's plan to scale back its monetary easing measures in the next few months.

Fu Peng, Chief Macro-Economy Consultant of Galaxy Futures Co., said, "The market has a strong expectation for a recovery of the US economy, after the strong data released overnight. Under this condition, gold temporarily loses its function of hedge. Meanwhile, we consider that the declining yen is another factor for the weakening gold."

Analysts warn that individual investors should be cautious in investing in bullion.

Fu said, "Individual investors should be aware that bullion prices are still in a gloomy situation recently, and they should observe more and not invest too much in the market."

International investment organizations have also cut their forecasts for gold. Following Goldman Sachs and UBS, Morgan Stanley recently lowered its 2013 gold price guidance by 5 percent and slashed its gold and silver forecasts through 2018.