Gold and silver slumped to their lowest since 2010 on Friday as the dollar and stock markets soared following a new round of quantitative easing by the Bank of Japan and data showing a robust U.S. economy.
Spot gold slid 3 percent to its lowest since July 2010 at $1,161.25 an ounce in earlier trade and was down 2.8 percent at $1,164.64 by 1344 GMT.
The metal breached important support levels at $1,200 and $1,180, where stop losses -- automatic sale orders -- were placed and was on track for a 4.7 percent drop this week, the biggest weekly decline since June 2013.
U.S. gold futures were down $34.00 an ounce at $1,164.70.
"Spot gold is at its lowest for four years ... and it could fall further towards the $1,120 level if the dollar strengthened even more significantly," ActivTrades analyst Carlo Alberto De Casa said.
"More stop losses could be triggered if we consistently broke below $1,170, but the downside seems limited by the fact that we are close to cost of production above $1,000."
Spot silver fell 4 percent to its lowest since February 2010 at $15.76 an ounce and was poised for a fourth monthly drop in a row. It was down 3.1 percent at $15.92.
Gold and silver were already facing some heat after the U.S. Federal Reserve earlier in the week largely dismissed financial market volatility, a slowdown in Europe and a weak inflation outlook as factors that might undercut progress towards its unemployment and inflation goals.
The hawkish comments and strong U.S. gross domestic product data on Thursday dulled gold's appeal as a hedge against risk.
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