Gold price tumbles 5% on hopes of US economic recovery

The price of gold fell more than 5% as investors became more confident about the health of the global economy.

Gold hit a low of $1,688.44 an ounce in New York on Wednesday, after trading as high as $1,791.49 an ounce.

However, it recovered to about $1,715 an ounce by the end of the Asian trading day on Thursday.

Sentiment was boosted by comments from Ben Bernanke, the chairman of the US central bank, who said the US economy is continuing to recover.

Gold is considered a safe-haven investment in times of uncertainty.

Analysts said hopes of a recovery in the US economy may see an increased appetite for more risky assets.

But although the recent economic data from the US had been encouraging, some analysts warned that the recovery remained fragile and any new concerns about growth may see investors turn back to gold.

"It's just a pull back. It doesn't feel like it would be the start of a bear market," said Jeffery Sherman of DoubleLine Capital.