( Financial Times ) -- Gold prices have suffered their sharpest fall since the 1980s , heightening fears among investors that the precious metal 's decade-long bull run has ended . Spot gold prices tumbled by more than $ 100 an ounce , or 8.7 per cent , in a few hours on Monday amid a rout in metals markets , while silver fell 11 per cent . Faltering European demand and weaker than expected Chinese economic data depressed oil prices , pushing Brent crude down by 3 per cent to $ 100.02 a barrel , a nine-month low . The S & P 500 recorded its worst session in six months , closing 2.3 per cent lower as energy and materials companies tumbled . Gold 's drop since Friday to a two-year low of $ 1,355.80 a troy ounce is the sharpest two-day tumble since 1983 , when the last gold bull market was unravelling . `` This has really tested people 's resolve , '' said David Rose , global head of metals trading at HSBC . `` People who have said they want to be long are asking 'How much do we really want gold to be part of our portfolios ? ' '' Gold has enjoyed a stellar run over the past decade . Prices surged more than sevenfold since 2001 to an all-time high of $ 1,920 a troy ounce in 2011 , as investors turned to the metal as a haven from turmoil in the rest of the financial world . But as fears over the eurozone debt crisis recede and investors bet on a recovery in the US , sentiment towards gold has suffered . Credit Suisse , Société Générale and Goldman Sachs have all called the end of the bull market in recent months . `` This is a market that has only got one thing on its mind : get me out [ of gold ] , '' said David Govett , head of precious metals at brokerage Marex Spectron . The collapse in prices will hurt investors with large gold holdings such as John Paulson , the hedge fund manager who made billions betting against the US housing market during the financial crisis . In addition to Mr Paulson 's $ 3.1bn holding of shares in a gold exchange traded fund , at the end of last year Mr Paulson 's hedge funds controlled shares in at least nine gold miners worth almost $ 1.1bn at current prices , according to regulatory filings . More than half of that is in one stock , AngloGold Ashanti , where Paulson & Co is the largest holder with a 7.35 per cent stake . AngloGold Ashanti shares have dropped 39.5 per cent so far this year . John Reade , Paulson & Co partner and gold strategist , said that the fund had not changed its long-term thesis on gold , arguing that quantitative easing by the world 's central banks would ultimately lead to higher inflation : `` Federal governments have been printing money at an unprecedented rate creating demand for gold as an alternative currency . It is this expectation of global paper currency debasement which makes gold an attractive long-term investment . '' More than half Paulson & Co assets are denominated in gold including the great majority of Mr Paulson 's own fortune , according to people familiar with the firm . Bill Gross of Pimco , the world 's largest bond fund manager , in February described gold as a `` decent hedge '' `` OK , so I made a bad call , '' he admitted in a tweet on Monday , but added that he `` would still buy gold here '' . In a New Year letter to investors , David Einhorn listed gold as one of his Greenlight fund 's top five holdings along with stock in Apple , Cigna , General Motors and Vodafone . `` We took some lumps as gold declined , '' he admitted in the letter . But Mr Einhorn has also been bearish on the yen since 2010 , a position that started to work in the fourth quarter last year and has been one of the most successful hedge fund trades this year . The Tudor hedge fund has been betting against the gold price this year , according to people familiar with the situation . Tudor declined to comment . Nonetheless , traders said that investors had lost patience with arguments that higher inflation is inevitable . `` QE is not inflating the world economies like governments have hoped , '' said Mr Rose at HSBC . `` Commodities that have had inflation priced into them for a long time are struggling . '' Traders added that Cyprus ' decision last week to sell a portion of its gold reserves as part of a bail-out deal had dealt a sharp blow to confidence in the market , arousing fears that other eurozone countries with much larger gold reserves could follow suit . Additional reporting by Emiko Terazono in Lausanne . © The Financial Times Limited 2013 .
Gold hit a two-year low on Monday of $ 1,355 per troy ounce . Investors fear gold 's decade-long bull run is now over . Comment: Better economic conditions in U.S. and Eurozone have stifled demand for gold as safe haven .