Gold Price Plunges Amid Global Economic Uncertainty

The gold price has been on a rollercoaster ride this year, hitting a record high of $US5595 an ounce in late January and falling to a year low below $US4000 an ounce in July.

Since then, the price has recovered some but is now hovering around $US4160 an ounce. The fluctuations are largely due to global economic uncertainty, particularly in the US.

The war in the Middle East and its impact on oil prices have contributed to higher inflation and interest rates, which are unfavorable for gold investors.

However, China's central bank has been buying up gold at a record pace, and other countries may follow suit as the price becomes more attractive due to rising yields.