The yellow metal once considered a safe haven continues to plummet, not only in price but also in production. Reports from mining consultancy Surbiton Associates said that Australian miners produced 5 per cent less gold in the first quarter of 2013.

The miners churned out 63.5 tonnes which was lower than the previous quarter but slightly higher than the same quarter in 2012.

As a result of the weaker production and lower gold prices, shares of the largest gold producers in Australia and New Zealand also went down. In the case of East Otago-based Oceana Gold, share prices skidded down on Friday to a 12-month low of $1.90 before it closed at $1.98.

The meant Oceana had shed more than 50 per cent of its value from the high of $4.50 in late October 2012, causing the company's value to go down to $563 million from $1.32 billion.

On the same day, Newcrest, Australia's largest gold miner, traded at A$11.66, higher than the year-low of A$11.50. Newcrest's peak share price was A$29.97.

Peter Mcintyre, broker at Craigs Investment Partners, explained the sharp decline in Newcrest's share prices to complete loss in investor confidence which is a U-turn from its reputation as once the shining light of the resource sector.

The yellow metal traded $1,389 on Friday. It is within the upper $1,300 range that gold has been trading the past five weeks.

Besides Newcrest which has announced over 100 job cuts and the closure of its Brisbane office, Focus Minerals is reportedly also axing jobs near Coolgardie, while Alacer Gold said it would stop mining in Australia and focus its operation in Turkey where the cost is significantly lower.

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