Gold futures on the COMEX division of the New York Mercantile Exchange fell to a one-month low on Tuesday due to short selling.
The most active gold contract for February delivery slumped 25. 3 dollars, or 1.47 percent, to settle at 1,695.8 dollars per ounce. It was the lowest settlement price for the most active gold futures contract since Nov. 5.
Market analysts attributed the plunge to technical short selling, as investors usually adjust their portfolios at the beginning and the end of a month.
As November failed to give any upside momentum to gold, market analysts worried that the Tuesday slump may signal the beginning of a serious selloff.
Silver for March delivery lost 95.1 cents, or 2.82 percent, to close at 32.808 dollars per ounce. Platinum for January delivery slipped 30.9 dollars, or 1.91 percent, to close at 1,582.9 dollars per ounce.