The price of bitcoin tumbled below USD 40,000 for the first time in months and other cryptocurrencies were pressured on Wednesday after the People's Bank of China apparently warned against using digital coins as payment

Bitcoin was last down 12 percent to USD38,180, setting a fresh low for the past 24 hours of USD36,219 in a month that has left the No 1 cryptocurrency 31 percent lower. Bitcoin hasn't traded below the USD40,000 level since early February and is roughly 40 percent below a mid-April record high of USD64,829, the report said.

Reacting to the BItcoin crash, Gold prices caught the momentum after strong selling pressure in the crypto market and buying emerged in the SPDR Gold Trust Exchange Traded Funds.

Gold prices also get support from the weakness in the dollar index and steady benchmark 10-year bond yields.

Inflation concerns, accommodative Federal Reserve monetary policy, and downbeat economic data pushed the dollar index to a five-month low that supported safe-haven buying in the gold.

As far as the dollar index is concerned, it has strong support in the range of 89.80-89.20 zone and once it breaches 89.20, a free fall is expected towards 86.70 levels that could support prices of the gold.

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