Gold slipped as much as 2.7 percent on Thursday as losses in other markets, prospects for easing inflation, and worries about central bank sales drove investors to sell bullion to raise cash, undermining the metal's status as a safe-haven investment.
Gold, which has plunged around 18 percent this year, marked a session low of $1,339.86 an ounce. It had recovered to near the previous day's close at $1,377.16 by 0642 GMT. US gold futures for June delivery on COMEX fell more than 3 percent to as low as $1,335.60 an ounce during the session, dragging down cash gold, silver and platinum group metals.