FXStreet reports that gold prices fell sharply at a time when there was panic on equity markets and frantic buying of the dollar though last week, the dynamics changed. Strategists at ABN Amro expect weakness in the yellow metal price.

"The closure of gold refineries in Switzerland, resulted in a sense of shortage in physical gold at a time that more investors wanted to buy. So gold prices moved back to USD 1,600 per ounce."

"We continue to expect weakness in gold prices as sentiment on financial markets deteriorates again and the US dollar strengthens."

"Long gold is still a crowded trade, especially investment gold. The sense of shortage in physical gold could continue as long as the refineries are closed. Investors may start to realise that they may not have the gold investment that they would have loved to have."