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."
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies