Most of the plant extracts contain various sugar molecules such as sucrose, starch etc. These sugar molecule can play a potential role in reducing the gold ions (Au3+) into gold atoms (Au), which can by aggregation form gold nano-particles/ colloids.
The plant which is used in the synthesis can act as a capping agent. If the nanoparticle has magnetic behaviour , the plant extract prevents the agglomeration of nanoparticles.