According to the London Bullion Market Association July 21 (Bloomberg), Gold trading in London fell in June as average daily volumes fell 16 percent. Silver trading dropped 19 percent.

An average of 20.8 million ounces of gold traded daily, down from 24.7 million in May, the LBMA said today in an e- mailed statement. Silver turnover fell to a daily average of 85 million ounces, from 104.3 million ounces.

Gold prices climbed 2.1 percent in June in London to $1,242.25 an ounce, a third monthly increase. The metal reached a record $1,265.30 on June 21. Silver added 0.3 percent last month to $18.615 an ounce.

It was reported from NEW YORK/LONDON Reuters on Feb 19 that gold prices rose on Friday, reversing early losses fueled by a stronger dollar, as investors bought the metal to hedge against currencies’ volatility and debt default risks in Europe.

U.S. gold futures for April delivery GCJ0 were up $6.50 at $1,125.20 an ounce at 1:09 p.m. EST (1809 GMT) on the COMEX division of the New York Mercantile Exchange.

“Investors are buying gold as a hedge against currencies’ volatility,” said Carlos Sanchez, a metals analyst with CPM Group. “Gold seems to be consolidating near the $1,130 an ounce area.”

Gold priced in euros hit a record high of 826.35 euros an ounce as investors sought to diversify away from the beleaguered single currency.

Spot gold was bid at $1,124.45 an ounce at 1:13 p.m. EST (1813 GMT) against $1,111.40 late in New York on Thursday, having earlier touched a low of $1,098.55.

The metal’s usual relationship with the U.S. currency — strength in which normally weighs on the precious metal — has weakened as fears over the outlook for paper currencies in general lifted interest in bullion as an alternative asset.

The dollar hit an eight-month high against a currency basket on Friday, extending gains after the Federal Reserve’s surprise decision to raise its discount rate, its first hike in the rate since mid-2006.