Why is the gold price plummeting?

Take a look at a ten-year chart at this link. Gold Chart - Last 10 years Kitco is a great resource, by the way.

The price of Gold ended a multi-year uptrend in 2011 and has been trending down since then. For the past two or three years gold has traded in a distinct downward channel. Recently, it broke though the resistance level at the top of that channel. A few days ago it made an aggressive move upward. The most recent trading is a correction.

The price of Gold fluctuates. The price of any tradable commodity will do the same. There don't have to be reasons for every day’s trading. Prices are the result of thousands of individual decisions which are affected by what other people are doing and have done and might do.

The important thing to note is the breaking of the downward trend line. This is a significant event because it was a multi-year trend that is in the process of reversing. Personally, I think that the price of gold will head higher in coming months. There is some legitimate concern developing that aggressive low interest rate policies on the part of many governments is going to cause financial instability. Gold is a safe haven from financial instability.

Do keep in mind though, that this is just one opinion among millions of others. It isn't what I think that will move the price of gold. It is the collective decisions of thousands of traders and investors, with real money at stake, that will move the market.