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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

Gold hit a record high on Friday for the third time this week as poor U.S. consumer confidence and market talk of more quantitative easing helped the alternative asset score its biggest weekly gain since May. Spot gold fetched $1,275.50 an ounce at 3:11 p.m. EDT (2011 GMT), compared with $1,272.20 late in New York on Thursday. It has gained more than $100, nearly 9 percent, since the start of August. Covering gold's rally, silver has gained 5 percent this week, double the yellow metal's 2.5 percent increase. Spot silver was up 0.1 percent at $20.74 an ounce from $20.72 in New York on Thursday. The metal received a boost from data showing Thailand raised its gold holdings by a fifth in July through open-market purchases, joining a growing list of Asian nations diversifying into gold amid volatility in other markets. Silver rose to just below $21 an ounce, approaching levels not seen since 1980 as gold's rally triggered further investor speculation that the white metal wo