Markets are entering a zone of high turbulence, and gold is again in a long-term growth trend. This means that all price drops will be local and short-lived, and price highs will be higher and higher. After a period of sharp growth, the gold market has “speculated” overheated a bit speculatively, so the correction and high-amplitude price “swings” are quite an expected event.
The reason for these sharp fluctuations to the banality is simple: on any strong trend, a large number of speculators who trade with a large leverage open their positions. They amplify the amplitude of the trend, playing in its direction, and placing “stop loss” orders (to close the position in order to minimize the loss - if the price goes against the rate).
When the price goes further in the direction of the trend, speculators make a profit, and take new “shoulders” / credits for this profit - in order to increase the position even more, in order to earn more money. It turns out a kind of "financial pyramid" or a speculative "bubble" from positions taken on credit. When this speculative “bubble” is inflated to critical values, large players / market makers / “orderlies of the forest” go on the hunt. They arrange big sharp “swings”, during which the speculators with big “shoulders” lose their nerves, and they close their positions, as a rule, with a loss.