Gold drops below $1,300 on better US economic data

London, Aug 2. Gold today slipped below USD 1,300 an ounce after two-week as improving US economic data added to the case for reduced stimulus. Gold slid 2 per cent to USD 1,283.49 an ounce, the lowest since July 19. Prices are down 3.3 per cent this week. Silver fell 1.4 per cent to USD 19.35 an ounce. Prices reached USD 19.26, the lowest since July 18. Bullion dropped for the sixth day, the longest falling streak since May 17. The US Dollar Index, a measure against 10 major currencies, reached a two-week high after US reports showed claims for jobless for benefits fell to a five-year low and manufacturing accelerated. The Labor Department would release employment data for July later today. Gold dropped 23 per cent this year after some investors lost faith in the metal as a store of value. The Federal Reserve pledged this week to keep buying USD 85 billion in bonds every month. The Fed Chairman had said it's too early to decide whether to curb debt buying in September, after saying June 19 purchases could slow if the economy improves. Data on July 31 showed the US grew 1.7 per cent in the second quarter.