The price of gold shed over $300 or just under 16% in the month of September as the world watched the European economy come back under scrutiny and growth in America halt or reverse in some markets. So what does that mean for the price of gold?

Well some would say that if growth is down and interest rates are near 0% that the chance for deflation remains extremely high. Deflation has long been the enemy of precious metals like gold and silver.

However, both Europe and the US governments have made mention that to combat the slowing economies they will most likely take measures to boost growth by pumping money into the system once again, in some way or another. What that means is a potential to stem deflation or create inflationary pressures.

Inflation again, helps precious metals gain in price.

That could be some of the $25 price move we’re observing today with the price of gold. The sell-off profit taking and worrisome pressures have been stemmed by manufacturing numbers coming back higher and governments vowing to, well, inflate the economies.

Gold for December delivery GC1Z -2.05% declined $45, or 2.7%, to end at $1,594.80 an ounce on the Comex division of the New York Mercantile Exchange, the lowest settlement since July 21.

“Short term, there’s clear demand destruction in gold derivatives right now,” said Adrian Ash, head of research at BullionVault.com, in emailed comments.

CME Group late Friday raised margin requirements for some gold- , silver- and copper-futures contracts, adding pressure to metals prices Monday. Margin is money investors must put up to be able to trade and hold futures contracts. You can see that report here.

It is clear that investors had millions upon millions of dollars in gold and silver, and now both the meals are taking massive reduction hits because of the selloff.

That being said, gold and silver are still one of the best places to invest your money, as at least your money will be safe in these metals.

Gold was acting as a safe haven for most investor’s money, however most of these same investors have had to pull their money out of gold and use it to cover massive losses from the market. The past two days alone has seen the stock market tumble over 600 points.

The most actively traded gold contract, for December delivery, fell $55.20, or 3.2%, to $1,686.50 a troy ounce in early trade on the Comex division of the New York Mercantile Exchange. This was the first time the contract had traded below the psychological level of $1,700 in almost two months.

“The most important thing that all financial markets crave…is some sense that politicians are prepared to take bold policy decisions on the economies,” said Ross Norman, chief executive officer of London-based gold-bullion dealer Sharps Pixley.

Gold prices are continuing to crumble due to the fact that investors need to put out investment fire losses in other areas, as well as sell off their gold in favor of cold, hard cash, which we all know is always king.

Gold, which has been a safe haven from global political and economic uncertainty for much of this year, has suffered a big setback this week amid losses in many other asset classes. The current state of gold is a far cry from the projected $2,000 per ounce price range that many experts were predicting.

It should be interesting to see what happens with gold during the rest of 2011. When all is said and done, gold is still probably going to be a great investment. After all, it is still gold!

Gold for December delivery was sent plummeting down $51 to $1,757.10 an ounce at the Comex division of the New York Mercantile Exchange. The gold price has traded as high as $1,789 and as low as $1,749 while the spot gold price was down almost $26, according to Kitco’s gold index.

What can we takeaway from this? The only word that comes to mind is “PANIC.” Which is what all these investors are doing. Rightfully so I guess, as the money they have in gold is at least able to keep many of these investors afloat, even when their other stocks and commodities take a huge hit like they did today, and the past few days.

The price of gold is very volatile right now. Recently it was hovering over the $1,800 an ounce mark on its way to $2,00o an ounce. However, with the rising fears in Europe and the Federal Reserve’s downgrade of the U.S. economy, investors are in the midst of a sell off of gold just so they are able to survive.

Gold prices will continue to be volatile for the foreseeable future, with gold acting as a safe haven for money in the long run. It should be interesting to see what gold prices do in the next few weeks after all of these cash starved investors finish this needed gold sell off.

RBC Capital Markets went on to say that lower moving averages, lower open interest, lower highs all contribute to selling based on technical charts. “Dollar’s strength, euro weakness and heavy selling pressure from overseas contributed to commodities selling off as anti-inflationary expectations are raised by lack of economic improvement according to the Fed, and downgrades of banks and economic growth from different sources,” they say, noting $1,650 is the next support area.

Keep an eye on gold futures, as now may be the best time yet to get invested in them while the prices are this low.

Donald Trump, real estate mogul and TV personality has accepted gold bullion as a security deposit from APMEX for the Trump building location in Wall Street they will be occupying in New York City.

Some people may think this isn’t big news, Donald Trump does crazy things all the time. But what some may be overlooking is the fact that gold is being used as a currency here, that hasn’t been done in the US, at least not in large quantities, for years.

Could this be signaling things to come for the US dollar?

The numbers are listed below, and while they don’t look like anything crazy, they are all over the place. HSBC released a statement regarding how they came up with these numbers. Here is the statement.

“HSBC has raised its gold price forecasts for 2011 through 2013, saying gold is benefiting from fears about high government debt levels, geopolitical risk, and few alternative havens.”

HSBC Gold Forecasted Gold Prices

• 2011 gold price forecast to $1,630 per ounce from $1,590.
• 2012 gold price forecast to $2,025 per ounce from $1,625.
• 2013 gold price forecast to $1,850 per ounce from $1,550.

At least the prices are staying high, which means that gold will remain a great investment, especially if you need to protect your money.

There was a little less concern in the region today, as debt crisis looked to be put on hold (at least for a bit) and eroding demand for the metal as an alternative asset dropped. The good news is that at least it looks as though Europe may stand a bit stronger for the rest of the year (though this could change at any moment), the bad news is that gold prices dropped on the news, showing the glaring problem that we have with gold and gold prices.

“This is an initial knee-jerk reaction after ECB’s statement as people are viewing it positive for the European economy,” Frank McGhee, the head dealer at Integrated Brokerage Services in Chicago, said in a telephone interview. “The ECB has managed to find a band-aid for now.”

And it looks as though that is exactly what it is, a band-aid that will hold the wound for now, but does not solve the problem for the future.

As for the price of gold itself, gold futures for December delivery fell $39.90, or 2.2 percent, to $1,786.60 an ounce at 10:01 a.m. on the Comex in New York, after touching $1,779.70, the lowest since Aug. 29.

Before today, the precious metal climbed 29 percent this year, reaching a record $1,923.70 on Sept. 6. As we have repeatedly stated, you can expect to see price spikes like this for gold for the foreseeable future. However, it is still gold, so even a price drop is still going to allow the metal to be very sought after.

Lets look at this from both perspectives. Gold is either going to shoot up to $2,000 or more per ounce in the very near future, or it is going to settle back in at a corrected price of $1,500-$1,700. Which way will it go? That depends.

Either gold and other precious metals are about to become one of the only (if not the only) safe haven for investor’s money, or there is going to be a huge gold sell off to cover losses that are going to occur from the Greece default situation.

So much money American money is tied up in Europe that I wouldn’t at all be surprised to see a big sell off for gold, simply because most investors do not want to ride the situation out. They would rather cut their losses and continue to invest in the yellow metal after the fact.

However, other investors may want to continue to throw even more money in gold and try to keep all that money safe and just suffer the losses that can’t be helped if Greece does default.

My personal thought is that gold and silver will both be very valuable in the future, as the two metals are just about the only safe haven left for investor’s money.

I am not guaranteeing anything, but my thought is that gold will still hit that $2,000 an ounce price range before 2011 ends, and if it does, you can expect it to spike up even higher to the $2,100-$2,300 an ounce price range.

For now, the only thing we can do is wait and see what happens in Greece. You need to go ahead and make a decision one way or another involving any gold you are invested in, as you need to be ready to move on that decision when or if Greece defaults, which is looking very likely.

Gold prices have been spiking wildly lately, as the price of gold can’t stay put in one place for long. The spikes have been up and down, yet gold refuses to drop too much without spiking back up to an even higher level.

Gold for December delivery settled up $2 to close at $1,859.50 an ounce at the Comex division of the New York Mercantile Exchange. The gold price has traded as high as $1,889.10 and as low as $1,825.50 while the spot gold price was losing $11, this according to Kitco’s gold index.

Obama’s speech didn’t seem to settle any fears about the job situation in America, as investors will want to wait and see if his plan takes hold and works or not. With that being said, it is still a smart choice to get you money in gold and silver to protect it, as it is a guaranteed safe haven right now.