Gold Prices Today Plunge on China Tightening Expectations

The volatility connected to gold prices continues as they fell again today, this time on worries over how far China will go to battle its inflation challenges. Gold prices today have plummeted on the concerns, with spot gold down by $17.40, to $1,383.70 an ounce as of 1:45 PM EST, according to Kitco.

Gold prices have become more volatile than usual because of competing economic events affecting it.

Along with China's inflation battle, there is the quantitative easing of the Federal Reserve, value of the U.S. dollar, the sovereign debt crisis in Europe, global economy and interest rates. All of which push against one another to influence gold prices.

When one dominates the news, the price of gold swings one way or the other in response. Investors are attempting to figure out which way the overall sector will go as the events unfold.

Commodities in general will continue to respond in a similar fashion, although you have the supply/demand element included with those that isn't as influential with the prices of gold.

None of this changes the longer term prospects for the price of gold, but it appears it'll be a jagged gold price ride on the upward journey.