The price of gold is poised for the worst run of monthly losses in almost 13 years as concern that Europe\u2019s spiralling debt crisis escalates and is driving investors to pile back into the US dollar as a safe haven over the precious metal.<\/p>\n
Latest Gold Price<\/strong><\/p>\n Spot gold fell as much as 0.3 percent to $1,558.75 an ounce, and was at $1,560.95 at 15:00 in Singapore, after climbing 0.5 percent yesterday. Gold bullion is 6.2 percent lower in May for its biggest drop this year as the US Dollar Index rallied 5.2 percent against a six currency basket including the euro. A fourth monthly decline would be the gold\u2019s longest run of losses since the period to August 1999.<\/p>\n Trading Volume Records<\/strong><\/p>\n August delivery gold bullion fell as much as 0.3 percent to $1,560.70 an ounce on the Comex in New York and was last at $1,564.20. Trading volumes set a record of 484,721 contracts on May 29, which included electronic trading while the floor was closed on May 28 for Memorial Day, according to the exchange.<\/p>\n “The yellow metal triggered some major stops as it moved down below $1570 and back below the trend line,” says Swiss refiner and finance group MKS’s daily note on the gold price.<\/p>\n “On Tuesday’s move down, traders saw somewhat 856,000 ounces being exchanged” in US gold futures the note says.<\/p>\n “Gold continues to consolidate the last leg down, trading sideways for the past 2 weeks.” says strategist Russell Browne at Scotia Mocatta, also pointing to $1522 as support.<\/p>\n “The lows near $1520 underpin our greater bullish view for gold,” agrees a note from Barclays, also a market making bank in the London gold market.<\/p>\n “Near term we expect a range to unfold under $1620,” says Barclays, adding that the bank’s analysts are “bullish for silver while above $26.00″ with an initial target of $29 per ounce.<\/p>\n<\/p>\n