Gold on Friday declined as some investors sold the metal after debt and growth concerns in Europe and the US boosted prices to a record and increased scrap supply.
Gold fell USD 6.70, or 0.4 per cent to USD 1,582.60 an ounce on the Comex after reaching a record USD 1,594.45 yesterday. Prices are up 2.7 per cent this week and rose the previous eight days, the longest streak of gains since April.
Silver also fell 1.2 per cent to USD 38.23 an ounce, after yesterday climbing to a two-month high of USD 39.39.
Bullion touched a record yesterday on speculation that debt woes in the US and Europe will escalate. Standard and Poor’s became the second rating company this week to say it may cut the US's top credit grade.
Gold scrap supply is "noticeably above normal levels," as prices rise, UBS said.