Prices of all three precious metals – gold, silver and platinum – continued to fall over the weekend as well as at the start of the new week, with all three reaching their lowest levels in the last five years.

The fall, which has been seen over the past few days, is largely on account of the strengthening of the dollar, which got a further boost last week when chair of the US Fed, Janet Yellen confirmed that a rate hike was likely to be announced this year. It will be the first since 2006, when it happens.

While gold nearly touched the US$ 1,100 per oz mark, and even dipped below Rs 25,000 in India in some markets, silver recorded a low of near Rs 33,000 per kg in India and touched US$ 14.60 per oz in London trades. Platinum, which has also seen a significant fall this year, fell below the US$ 1,000 per oz mark widening the gap with the gold price. In India, however, it traded around Rs 27,500 per 10 gm.

Though there was a mild recovery from the lowest levels, all three metals are still near historically low price points.

Analysts say that in addition to the US Fed rate hike, the stronger performance of the US economy has also helped the dollar to strengthen, thus impacting the attractiveness of precious metals for investors.

The easing of the Greek crisis with the near finalisation of a new bailout package; the continued preference of Chinese investors for stock markets and real estate, and the spectre of a below normal monsoon affecting rural demand for gold and silver in India have also impacted metal prices. A quick recovery is unlikely, most observers feel.