Global gold prices see worst two-day dip since 2013

Gold prices continue to fall on Wednesday, with the precious metal shedding around 6% of its value in two days, the worst dip since 2013.

According to Bloomberg, spot gold slid below $4,080 an ounce as European trading got underway. On Tuesday, the bullion fell by 6.3%, over concerns that the rally in gold prices has reached its peak.

The yellow metal plummeted 5.7% on Tuesday, its largest drop in more than 12 years.

The bullion has seen an eye-watering run-up since the turn of the year, helping it climb more than 60% and hitting multiple records, with observers suggesting it could soon hit $5,000 an ounce.

The rally has been built on a range of issues, including a weaker dollar, expectations of interest rate cuts, falling bond yields, and central bank buying.

Lingering worries about the global outlook have also boosted its haven status, while a fear of missing out on the surge has equally played a part.

But the buying reversed on Tuesday, tanking as much as 6% at one point, and continued its retreat in Asia, hit by profit-taking, hopes for a further easing of China-U.S. tensions and a stronger dollar

At one point on Wednesday, it hit a low of $4,000 -- a day after chalking up a record peak of $4.381.51. Silver, which has been riding the coattails of the rally, also plunged.