Regions

On Thursday, gold saw its value plunged again on Thursday. Arabian Business said the equities rally and the stronger economic recovery in the US had decreased the need to invest in the precious mineral. Should it continue, buillion is expected to record an almost 30% drop for 2013.

Wing Fung Precious Metals head of dealing Peter Fung said, "Gold is still under pressure despite the support from currency market. The physical market is quiet, there is some profit-taking, and we don't see fresh buying interest from the funds."

AWR Lloyd mining and metals analyst Arran Marshall said that despite him not an expert in gold antiquities, he said, "The thing with old pocket watches is the purity of the gold isn't necessarily as good as it is today, so sometimes you had to be a little careful in terms of the actual value of gold sitting in your hand."

Spot gold was seen to have eased 0.2% to $1,201.71 per ounce by midnight GMT, which is the biggest decline since 1981. Friday data also indicated a sustained economic strength in the US as orders for long-lasting manufactured goods of the US climbed in November, and that planned business spending on capital goods reached its largest jump in about a year. Moreover, Strong economic data had led the US Federal Reserve to announce its plan to cut back its $85 billion in monthly bond purchases from January last week.

On the other hand, US shares on Tuesday edged higher into record territory just before the Christmas holiday, while the Nikkei share average of Japan marked its closing high on Wednesday, which was buoyed by investor optimism over the world economy overall.

On Tuesday, Centerra Gold Inc said it had entered into a non-binding agreement with the Kyrgyzstan government that will lead to the joint ownership of the country's flagship gold mine Kumtor. Moreover, non-resident Indians were observed to be bringing in gold into the country to help traders cope with imports restrictions during the peak wedding season.