The price of an ounce of gold (28.3 grammes) fell around 7.5% on Wednesday to $4,036 from a record high of $4,381.6 on Monday.

Amid signals by US President Donald Trump of possible easing trade tensions with China, gold prices have been posting declines this week.

The precious metal's all-time high on Monday was fuelled by trade tensions between the top two economies, expectations of rate cuts by the Federal Reserve, and central banks' move to purchase gold for their reserves.

But after Trump's remarks about reaching a "fair deal" with Beijing, following threats to impose 100% tariffs over China's move to tighten rare earth export controls, gold plummeted.

The ounce price of silver also dropped 12% from its highest point of $54.5 last week to $47.9 on Wednesday.