Gold continued to lost its luster as prices of spot gold futures for June delivery dropped 0.7 per cent and closed on Thursday at $1.386.90 an ounce on the Comex in New York. It is the sixth consecutive prices that the price went down, and the longest slump for the precious metal once considered a safe haven.

Before that closing price, gold actually dipped to $1,368, the lowest for a most-active contract since April 18.

Reckoned from January 2013, gold has gone down 17 per cent as a result of some investors losing confidence in the yellow metals as storage of value amid a 5 per cent boost in the American dollar.

Spot gold prices also declined to as low as $1.374.99 an ounce, the lowest price since April 17. Given the metal's weak price, gold is just $60 away from its two-year low recorded in mid-April.

The quarterly report of the World Gold Council said the central banks continued to buy gold in the first three months of 2013, adding 109.2 tonnes of the metal to their reserves.

Demand for gold in the jewellery sector also continues into the first quarter of 2013 from the fourth quarter of 2012.

Despite the $20 overnight drop in gold prices, China purchased a large amount of the yellow metal on Thursday morning causing prices of gold bars in Hong Kong, China's main source of gold imports, to go up by $5 an ounce over spot London prices.

Due to gold's weakness, investors are seeking other storage of value such as fine art.