Gold Set for Fourth Weekly Drop

Gold dropped, heading for a fourth weekly loss, as outflows from exchange-traded products countered rising physical demand from Australia to India. Silver was poised for its worst week in almost 19 months.

Gold for immediate delivery lost 0.3 percent to $1,386.85 an ounce at 9:08 a.m. in Singapore, after earlier gaining 0.5 percent. Prices have dropped 6.5 percent this week, slumping to $1,321.95 on April 16, the lowest since January 2011.

Gold plunged 14 percent in two sessions through April 15 on growing optimism that an economic recovery in the U.S. will curb appetite for the precious metal as a haven. Prices also dropped on concern Cyprus may lead other European states in selling the metal from reserves, according to Goldman Sachs Group Inc. Retail sales and jewelry demand soared in India and China, while the U.S. Mint sold 153,000 ounces of American Eagle gold coins in April, the highest in almost three years.

Holdings in exchange-traded products backed by bullion decreased for a 13th day to 2,348.099 metric tons, the lowest since January 2012, according to data compiled by Bloomberg. Assets in the SPDR Gold Trust, the biggest ETP, were at the lowest in three years.

Gold for June delivery was little changed at $1,391.20 an ounce on the Comex, down 7.3 percent this week. Futures on April 16 touched $1,321.50, the lowest since January 2011.

(Source: Bloomberg)