With the crisis in Greece dying down, and rumors that the Federal Reserve will raise interest rates, Gold fell by 4% on Monday. At its lowest, the commodity hit $1,088 (£699) an ounce, before bouncing back to $1,106 during Tuesday trading.

In times of financial uncertainty, Gold is largely seen as a safe-haven for investors. Traders often view Gold as negatively correlated to the USD, and with optimism in the dollar continuing to rise, traders are shying away from Gold.

Laith Khalaf, a senior analyst at Hargreaves Lansdown, noted: “Given the direction central bank policy in the US appears to be going, expectations of a rate rise could also be weighing down on gold.”

Analysts are also attributing the fall of Gold to the recent wave of unusually positive news in world politics. The eurozone’s ability to handle the Greece crisis has restored confidence in the Euro currency. Meanwhile, the recent deal with Iran, analysts believe, reduces the chances of war in the Middle East, including Syria.

Gold’s last hope, of China buying up gold reserves, also seems to be an illusion now. Many traders believed in the past that China’s appetite for Gold would boost demand, thereby boosting the price of Gold.

“China has raised its gold reserves a bit,” writes The Economist, “but its bullion hoard is still puny, and as a share of total reserves, China’s gold holdings are falling.”