Gold price mini-rally quickly runs out of steam

The gold price gave up some of its recent gains on Tuesday, snapping a two-day winning streak as it struggles to recover from one of its worst quarterly performances in history.

In late afternoon trade gold was changing hands at $1,243 an ounce after sliding $12 an ounce or 1% during the regular trading day.

The precious metal added a combined 3.6% on Friday and Monday after earlier last week hitting three year lows below $1,200 an ounce and ending the second quarter with a loss of 23%.

The most recent sell-off on precious metals markets came after chairman Ben Bernanke hinted the US Fed Federal Reserve's stimulus program may come to an end this year as the world's largest economy continues to recover.

When the Fed starts tapering off QE, which floods markets with cheap money, it will further strengthen the US dollar and tarnish gold's status as a storer of wealth.

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