Gold drops on slowing demand

London, May 7. Gold prices dropped for the second day on signs that demand may be slowing. The precious metal fell 0.7 per cent to USD 1,459.85 an ounce. Prices are still up 10 per cent since reaching a two-year low on April 16 at USD 1,321.95 an ounce. Silver also fell 1.2 per cent to USD 23.71 an ounce. Assets in exchange-traded products fell 0.3 per cent to 2,254.68 tonnes, the lowest since October, 2011. Gold rose 4.8 per cent the previous two weeks on coin and jewellery demand. Trading in the benchmark contract on the Shanghai Gold Exchange sank to 15,995 kilograms (35,263 pounds), the lowest since April 12.