Gold today fell to a one-week low as an improving outlook for economic growth curbed demand for the precious metal as a protection of wealth and the US dollar strengthened.
Gold fell 0.4 per cent to $1,679.90 an ounce. It dropped 0.5 per cent to $1,677.65 an ounce, the lowest since January 17. Silver also slumped 1 per cent to $31.92 dollar an ounce.
China’s manufacturing expanded at the fastest pace in two years, a private survey of companies from HSBC Holdings and Markit Economics showed today.
The world economy will expand 3.5 per cent this year from 3.2 per cent in 2012, the IMF said. The US Dollar Index, a measure of the greenback against six counterparts, rose 0.3 per cent, curbing demand for bullion as an alternative investment.
Gold advanced 7.1 per cent last year, the smallest annual gain since 2008. Gold may drop to as low as $1,450 this year as disappointed investors seek higher returns in equities and other commodities, market experts said.