The price has plummeted almost $50 back below $1700 per ounce to a point of $1675 today with trading looking dismal for the metal. Investors around the world seem to be dumping the bullion as well as shedding dollars in GLD and IAU.

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 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.

Some investors (both big and small) are a little worried. The price drop signifies a correction in gold price, which may bring gold down even further. However, gold prices have been as volatile as ever over the past year, so I wouldn’t read too much into the price drop. We know that at any given moment, the price of gold can spike right back up.

Seeing that the economy is still in the toilet, nobody likes the President’s new job and spending plan, and investors are continuing to look for a safe haven for their money, I would say that gold is still a great bet for your money.

The price of gold will probably shoot back up, and even hit the $2,000 an ounce price mark by the end of the year. If it doesn’t; well, it is still gold, and there is still going to be a vast market for it.

Get invested in some gold now while the price has dropped a little. If is a great way to protect your money, and even get a quick return of investment.

Speaking at the London Bullion Market Association’s annual conference in Montreal, Som Seif – the chief executive of Claymore Investments Inc., said that the price of gold should break $2,000 a troy ounce later this year, with sister metal silver following higher and breaking $50 an ounce as investment demand for bullion continues to grow.

“Our view for gold to cross $2,000 an ounce this year. In that eventuality, silver would be above $50 an ounce, but we then see a silver price of $75 an ounce if not more” as investment demand drives an implied deficit in the market, Seif said.

This is what I have been saying all along. The economy is just in to rough of shape for precious metals not to jump even more than they already have by the end of the year. Gold and silver are both just about the only sure bets left when it comes to putting a protective blanket over your money.

You can keep a close watch on the price of gold. If you believe what I have been saying about the price hitting $2,000 per troy ounce by the end of the year, then investing in gold now would be a smart idea.

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.

Seems like investors were choosing to push more into stocks today, as the $3 loss in gold price is really considered not much of a move either way when talking about the yellow metal.

Most investors chose not to rush their money into the safety of gold today, even with the dismal August retail sales report. Instead, many investors were pushing forward into other stock options, as they know gold investment is available at the drop of a hat when needed to protect their money.

Gold prices will continue to fluctuate over the foreseeable future, as a daily change in the yellow metal is expected. What kind of change? It all depends on the news coming out of Europe, as well as what type of mood the biggest investors seem to be in on that particular day.

Continue to monitor gold and get up to minute reports from Gold Rushed. If you have an opportunity, then now is a fantastic time to invest in gold, especially if you want to keep your money safe.

Gold for December delivery was up $14.60 at $1,827.90 an ounce at the Comex division of the New York Mercantile Exchange. The gold price has traded as high as $1,838.90 and as low as $1,794.80 while the spot gold price was adding $11, according to Kitco’s gold index.

Monday saw a huge sell off for gold, as the news that Greece was more than likely going to default sent investors scurrying to sell their gold to cover losses in other stock areas.

However, it seems as though investors turned right back around a used the price drop yesterday to invest in the yellow metal again, driving the price back up and solidifying gold as one of the best safe havens for money during these economic times.

We should continue to see gold prices spike up and down in a pretty volatile manner. However, gold will probably hit the $2,000 per ounce price range before the year is over.

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.