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Business News

Gold price recovers some ground after frenzied sell-off

Gold prices have paused for breath after its biggest battering for 30 years, but experts warned against an imminent recovery.

A selling frenzy driven by institutional investors and fears of a sell-off by central banks pushed prices down 9 per cent on Monday in the biggest one-day drop since 1983.

The price fell as low as $1,321.35 before bouncing back 2 per cent to trade at $1,387.76. The price peaked above $1,900 in September 2011.

VTB Capital analyst Andrey Kryuchenkov said: "For the moment, bullion's reputation among investors is damaged beyond repair... at this point inflation hedging or bullion safe haven buying does not appeal."