A steep fall in gold prices has pushed stocks lower in emerging markets including India, China and South Africa, while the dollar is sliding further against the euro.
The move is putting a strain on the global economy and could push investors towards buying more gold, the world’s reserve currency.
Gold prices slumped to $1,250 an ounce on Thursday after Chinese authorities said they will boost gold exports to bolster the yuan.
The currency is trading at around $1.3630, down about 5 per cent from its peak.
China is the world largest importer of gold and is currently weighing whether to allow it to be traded on the Shanghai Stock Exchange.
The gold market is expected to grow in 2018, according to Goldman Sachs.
The US benchmark the S&P 500 has been flat this year, while China has seen a surge in its own gold exports and imports.
Gold futures for January delivery fell to $US2,847.70 a troy ounce from $US4,093.55.
The Shanghai Stock Index fell 0.4 per cent to 1,895.50 points, while London’s FTSE 100 fell 1.6 per cent.