Gold's wild gyrations continue

After a volatile trading day which saw gold move within a $40 range, the precious metal ended the week firmly above the $1,700 an ounce level.

Gold fell abruptly this morning, pushed by a rising dollar after data showed the US economy created more jobs than expected, decreasing prospects the Federal Reserve will keep interest rates low for an extended period.

Contract gold fell as low as $1,677 on Friday and was changing hands at $1,713.40 in after hours trade in New York.

Charles Nedoss, a senior market strategist with Olympus Futures in Chicago was quoted by Marketwatch as saying "a swirl of rumors and fact likely got gold going:"

News that an Israeli air strike in Gaza killed a militant leader was likely misinterpreted as something involving Iran, he said. Gold shot higher as news of the air strike percolated, with volumes also high.

Moreover, gold ran higher with oil and equities, which has become more common with gold, as it often behaves like a classic commodity.

In 2011 trading in gold was the most volatile since 1980 with the gap between the year’s highs and lows coming in at close to $600 an ounce or a 32% range. In 1980, when gold hit a record $850 an ounce, the spread was even greater at more than 40%.