The spot gold price is at 1611.

Spot gold dropped to an 11-week low of $1,534.49 an ounce before edging back to $1,558.39 by 0706 GMT, bringing losses so far this month to nearly 15 percent, the biggest decline since the financial crisis in October 2008.

The spot silver price is at 29.39.

Spot silver was down 16 percent at one point to a low of $26.04, its weakest since November last year, before bouncing back to $27.97, a fall of just under 10 percent. The metal has lost more than a quarter of its value in just three sessions.   

Simon Denham at Capital Spreads talks us through the problems facing the gold and silver price this morning:

"It’s all about gold this morning which has not just fallen but absolutely plummeted some 12% over night and this morning as people pile out of the safe haven asset. 

"The problem with spiking rallies like the one that gold has experienced in the past few years is that at some point the higher they go, the more susceptible they are to a sharp correction to the downside.

"The liquidation of long positions is compounded as stops go off and investors scramble to get their cash out of an asset that in truth is as risky as any other commodity.

"Where do they put that money if it’s not under the mattress, well they put it into the ultimate safe haven, the US dollar. The question on many people lips now is whether this signals the end of gold’s bull market and a bursting of the bubble or will things settle from here and present a huge buying opportunity?

"Well if you look at the really long term chart and draw a Fibonacci retracement from 2002 to the recent high earlier this month, the 23.6% level comes in around today’s low so far around 1532."