As fresh concerns rose over the massive fiscal crisis that continue to cripple the eurozone particularly Italy and Greece, investors on Thursday went to a market frenzy as most cashed their investments prompting Asian gold prices to go down.

Spot gold crashed $1,759.50 a troy ounce at 0523 GMT, down $9.10 from its previous close. Earlier in the day, it fell about 0.8 per cent to an intra-day low of $1,754.20 a troy ounce.

On the Comex in New York, gold for immediate delivery dropped as much as 0.9 per cent, or $16.5 a troy ounce to close at $1,769.6 a troy ounce.

The ongoing standoff in Greece to select a new leader coupled with Italy's borrowing costs rising to alarming levels continue to disturb investor confidence worldwide, as was the case years back in 2008.

"We could see some liquidation (in gold) and the market could be choppy for now," economist Peter Fung said in the Wall Street Journal.

Analysts further see gold prices going down as banks generate cash to meet margins on debt holding positions.

They further said that gold, regardless of its safe-have appeal, is not immune to near-term pitfalls if the massive selloff in stocks continues.

The strong dollar is likewise putting a strain on prices as commodities dependent on the dollar become more expensive to other currency owners.

"It doesn't take rocket science to figure out that there is fundamentally something wrong with the current structure of the eurozone... The market needs a bit more reassurance that the Italian situation won't escalate into something much bigger," IG Markets strategist Stan Shamu said.