Sharpest drop since the 1920s as gold prices near three-year low

Julian Harris
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GOLD sank to near three-year lows yesterday, as positive data on the US housing market and consumer confidence emerged from America.

Despite partially paring the losses once the States’ weak GDP estimate was released, Bloomberg data shows that the yellow metal remains on track for its harshest quarterly drop since the 1920s.

Gold fell to its lowest price since August 2010 at $1,223.54 an ounce at one stage, but climbed back to $1,225.93 following publication of a final estimate showing that the US economy grew just 1.8 per cent in the year to the first quarter of 2013.

Gold has seemed to fluctuate in recent weeks depending on the chances of the US Federal Reserve slowing down its asset purchases. Yet since November last year it has lost around $500 per ounce.