1. Economic uncertainty: Gold is traditionally considered a safe haven in uncertain economic times. When investors fear economic instability, demand for gold as a hedge increases, causing gold prices to rise. This uncertainty can be triggered by factors such as economic recessions, political crises or geopolitical tensions.

2. Inflation Rate: Higher inflation rate can also affect the price of gold. During times of rising inflation, investors often look for real assets to protect their assets. In this context, gold is viewed as a store of value because it typically maintains its value or even increases when the purchasing power of paper currencies decreases.

3. Currency Fluctuations: The price of gold is traded in US dollars, so exchange rate fluctuations have a significant impact on its value. When the US dollar weakens, the price of gold usually rises because it takes more dollars to buy an ounce of gold. Conversely, a strong dollar often leads to a decline in gold prices.

4. Interest rates: The level of interest rates also influences the gold price volatility. Low interest rates make it less attractive to put money in savings accounts or bonds, causing investors to increasingly turn to alternative investments such as gold. If interest rates rise, it can dampen demand for gold as the opportunity cost of owning gold increases.

5. Supply and Demand: The supply of gold is influenced by factors such as mine production, recycling and central bank sales. Demand, on the other hand, is driven by jewelry, technology and investment. Changes in supply and demand can greatly influence the price of gold.

6. Technical factors: Technical aspects such as trading volumes and chart patterns can also increase the volatility of the gold price. When large investors enter or exit the market, it can cause rapid price fluctuations.

7. Speculation and sentiment: The behavior of investors and speculative traders also plays an important role. News, rumors and general market behavior can cause massive price fluctuations as they influence investor confidence.

In summary, gold price volatility is due to a complex mix of economic, financial and psychological factors. Investors watching the gold market should be aware of the underlying causes and be able to analyze them to make informed investment decisions.