Gold Price | featured news

Gold headed for its biggest two-day drop in 30 years on Monday as funds accelerated their exits from the market, and investors also cut exposure to oil, copper and grain after underwhelming Chinese growth data.

Gold futures closed at their lowest level in 21 months, tallying a roughly 20% decline from their record level from August of 2011 to meet the standard for a bear market. Recent cuts to gold-price forecasts continued to hurt sentiment, prompting investors to lose confidence in gold as a safe-haven investment.

Gold hit a 10-month low and industrially focused precious metals extended a slump, as investors continued to favor other assets on hopes for a steadying global economy.

The price of gold streaked past $1,700 an ounce for the first time Monday. Investors, beset by worries about the U.S. debt downgrade, Europe's financial crisis and slowing global growth, sought safety in the metal as stocks tumbled around the world.

The spot price of gold set fresh intraday records after Moody's put its long-standing triple-A rating of U.S. Treasurys on review, triggering fresh buying of the yellow metal and prompting bulls to eye a break above $1,600 a troy ounce.

Spot bullion hit on Friday a nominal record of $1,282.75 a troy ounce in London, up 3 per cent on the week, making a gain of 17 per cent this year