Gold faces its biggest monthly decline since late 2008

Gold prices fell today, and are heading towards recording their largest monthly decline since October 2008, with the impact of the uncertainty of the situation in the Middle East diminishing in the face of expectations of raising US interest rates to reduce high inflation.

The price of gold in spot transactions fell 0.8 percent to $3,985.57 per ounce by 0613 GMT, recording a loss of 12.1 percent since the beginning of the month, in what would be the fourth monthly decline in a row. US gold futures for August delivery also fell 1 percent to $3,999.20.