Gold rebounds above 5,000 after US downs Iran drone

Wild fluctuations in the price of gold continued on Wednesday as geopolitical tensions reignited after the US downed an Iranian drone . The precious metal, which is seen as a so-called safe haven for investors in times of uncertainty, shot back above $5,000 (£3,650) an ounce following days of sharp falls. Gold prices had been propelled to record highs by rapid changes in US trade policy, ongoing geopolitical uncertainty and conflict and central banks increasing their purchases of bullion. Wednesday's jump, to $5,061 per ounce, left the price of gold around 80% higher than the same time a year ago. A US military spokesman confirmed the Iranian drone had been shot down after it aggressively approached an American aircraft carrier in the Arabian Sea. Tehran has not commented on Tuesday's incident.