Gold extended losses on Thursday and dropped to its weakest since October 2007 after the dollar rallied to a 1-year high against the euro, prompting selling from investors. Investors, who propelled gold to a lifetime high of $1,030.80 in March on inflation fears and a struggling dollar, are ditching their bullion holdings after the US currency staged a dramatic rebound.
Other precious metals were at multi-month lows. Gold hit an intraday low of $748.60 an ounce, down 0.5 percent from $752.55/754.15 an ounce late in New York on Wednesday, before rebounding to $754.10/755.15 an ounce. Gold has dropped around 6 percent in the last two days - the biggest two day-drop since March.
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