25 Aug 2011

Plunge in price of gold

11:05 am on 25 August 2011

The price of gold plunged by 5.6% on Wednesday to close at $US1757.30 per ounce in New York, a drop of $US104 since Tuesday.

During a volatile week of trading, gold's price topped $US1900 per ounce during trading overnight in Asia on Tuesday.

Analysts put the falls down to profit-taking and hope of new measures in the United States to try to bolster its recovery.

Gold is perceived as a safe investment in times of uncertainty.