Gold has witnessed one of its most volatile starts to a year in recent years. The precious metal surged to record highs in January, climbing past $5,500 per ounce, before tumbling to $4,100 per ounce by August. The sharp correction came as renewed tensions over the Iran war sent oil prices soaring, fuelling expectations that the US Federal Reserve could raise interest rates later this year.
Despite the pullback, gold remains up about 20% for the year, even though it now trades about 25% below its January peak. A key factor that has helped prevent a deeper slide in gold prices is the steady pace of central bank buying.
