Gold dropped about 1 percent on Thursday, breaking below $1,300 an ounce for the first time since mid-February, as encouraging US economic growth in the fourth quarter diminished the metal's appeal as a hedge. Spot gold was down 0.9 percent at $1,291.56 an ounce by 3:06 pm EDT (1906 GMT), having earlier hit $1,288.80, which was a six-week low.
US COMEX gold futures for April delivery settled down $8.70 at $1,294.70 an ounce. Trading volume was about 65 percent above its 30-day average, largely boosted by the April-June rollover ahead of the April contract's first-notice day on Monday. Among other precious metals, silver edged down 0.2 percent to $19.65 an ounce. Platinum fell 0.4 percent to $1,396 an ounce, while palladium was down 2.7 percent at $754.75 an ounce as investors took profit after a recent rally on supply worries in South Africa.