latest world business news

Gold fell to a near three-month low on Tuesday, putting the metal on course for its worst monthly performance in 13 months as safe-haven demand evaporated and investors booked further profits on the 2010 rally. Spot gold fell as low as $1,322.70 an ounce and was bid at $1.327.70 an ounce at 1409 GMT, against $1,334.25 late in New York on Monday. U.S. gold futures for February delivery fell $16.80 to $1,327.70. Spot prices are on course for a 6.4 percent decline in January, which would be the biggest monthly fall since a 7-percent drop in December 2009. Selling is largely a consequence of a current run of positive economic data. "(We forecast gold) to have a bad first quarter," said Mitsubishi analyst Matthew Turner. "Economic data ended the year quite strongly and I thought if it carried on strongly, interest rate expectations would start to rise. "But maybe the economic outlook isn't as rosy as people think, and maybe we will see a recovery (in gold prices

The dollar's strength led to a 3.3 percent drop this week in gold, roughly matching the metal's last significant weekly decline since July. Gold stabled on Friday after its first weekly decline in nearly 3 months, with bullion investors keeping an eye on any statements from the G20 meeting. Any currency reaction to the G20 meeting in South Korea this weekend could provide fresh momentum to the gold market. Analysts, however, said it is unlikely for members to reach a deal on a U.S.-led initiative for a commitment from emerging economies to allow their currencies to rise. "I don't think there was an expectation that they will come up with a grand solution because everybody does have a different interest," said Axel Merk, portfolio manager of Palo Alto, California-based Merk Mutual Funds. "It's just the very beginning of a currency war. It's going to take a while to brew over. I have no doubt gold will be the beneficiary in the long run," he