Gold prices have fallen to their lowest level in five years, principally due to a strengthening dollar and receding fears over Greece.

The spot price of gold, often used by investors as a safe haven during economic crises, has fallen to just over $1,100 an ounce - its lowest level since April 2010.

The price slump comes as the US prepares of the Fed's first interest rate hike in eight years, and as domestic demand improves in the country. 

China has ended years of speculation about its official reserves of gold by revealing over the weekend that its gold holdings have jumped by 60 percent over the past six years to 1,660 tonnes.

The country is availing of the current low price of gold to lessen its dependence on the US dollar as its key foreign exchange reserve The price of gold fell by 2.3 percent after the Chinese central bank's announcement.

The US dollar's resurgence and higher bond yields have also reduced the demand for gold.