Gold prices swing sharply due to Middle East conflict and a strong U.S. dollar

The price of gold has been moving dramatically in both directions. It has climbed to highs above $5,400 and to one-month peaks as investors seek safety due to escalating military conflict in the Middle East.

At the same time, the price has also fallen, dropping as much as 4% on other days. These declines are linked to a stronger U.S. dollar and investor expectations that U.S. interest rates will stay higher for longer, which undercuts demand for gold.