Gold advances as plunge lures buyers

London, Apr 17. Gold today advanced for a second day on speculation that the biggest slump in three decades will increase purchases from investors and consumers. The gold gained 1.3 per cent to USD 1,386.25 an ounce. Prices touched USD 1,321.95 yesterday, the lowest since January 2011. However, silver fell 0.2 per cent to USD 23.35 an ounce. The price dropped to USD 22.07 yesterday, the lowest since October 2010. Bullion has lost 17 per cent in 2013 after rising six-fold in a 12 year rally through last year. The metal slipped into a bear market on April 12 on speculation central banks in Europe may sell holdings to raise funds and that a US recovery would spur the Federal Reserve to rein in stimulus. The 14 per cent plunge in two days through April 15 was the most since February 1983. The bullion in exchange traded products decreased for an eleventh day to 2,377.8 metric tonnes, the least since June.