Prices reached a low of $1,688.44 per ounce after Ben Bernanke suggested in his Monetary Policy Report before the US Congress that further quantitative easing was unlikely. The price fell after trading as high as $1,791.49 per ounce on the same day.
The price rose again to $1,715 per ounce this morning, however, as the Asian trading day ended.
The fluctuation is good news for the jewellery industry, which has been suffering on sales of gold pieces as a result of prices as high as $1,900 an ounce in September last year.
Prices were as low as approximately $1,540 per ounce in January this year, but have risen sharply over the last 10 weeks.
However, Bernanke did point to Europe’s economic situation as remaining stubborn, saying: “But real export growth, while remaining solid, slowed… as foreign economic activity decelerated, particularly in Europe.”
Gold is seen by investors as a safe haven during times of economic uncertainty, so a reduction in its price can indicate that investors’ confidence in other markets is growing.