Gold rebounded today as some investors deemed a 14 per cent plunge over two days to be excessive.
Gold rose 2.8 per cent to $1,385.60 an ounce in early trade after hitting a low of $1,321.95 earlier. Prices have lost 14 per cent in the past two days.
An Asian central banker said that policy makers may take the opportunity to buy.
Silver also rose 3.4 per cent to $23.54 an ounce in London, after falling to $22.07, the lowest since October 2010.