Gold continued on Tuesday its downslide as spot prices of the yellow metal, once considered a safe haven, tumbled down to $1,322.06 an ounce on Tuesday trading. It is the lowest price since January 2011, following last week's major drop which ended the 12-year winning streak of gold.

With gold obviously losing its luster, analysts warned of gold mine closures and share prices fall and costs of operations move the opposite direction.

Newcrest Mining (ASX: NCM) suffered an 8 per cent decline in shareprices which shave almost 20 per cent from the stock value since 2013.

As a result, Citigroup analysts downgraded to sell from neutral their recommendation for Newcrest Mining which has mines in Australia, Papua New Guinea, Indonesia and Ivory Coast.

Other Australian gold miners registered even larger losses. Medusa Mining (ASX" MML) is down almost 40 per cent for the calendar year, Perseus Mining (ASX: PRU) and Kingsgate Consolidated (ASX: KCN) shed off 30 per cent.

Banks such as Goldman Sachs have lowered their forecasts for gold as owners sell the shares in gold mining companies, adding to the continued plunge of commodity prices in the global market.

Joseph Kim, gold analyst of JPMorgan, said if the weakness of gold would persist, it would lead to revisions to life of mine production plans, work schedules and even shuttering of mines due to the declining price of the yellow metal.

Credit Suisse, which sought in February an end to the 12-year bull run of gold, urged investors to reconsider their holdings.

"While the fall has exceeded even our bearish expectations, it has once again demonstrated the fact that when market bubbles begin to unwind, the turnaround can be severe ... For investors who are still long it is, in our view, time to think the unthinkable," The Herald Sun quoted the investment bank's note.

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