Gold drops on China data, ending year's best run

London, Apr 23. Gold today fell, after rallying for five days in its best run this year, declining with other commodities after data showed China's manufacturing expanded at a slower pace. The gold lost 0.31 per cent to USD 1,421.90 an ounce. Prices are 9.4 per cent below the USD 1,561.45 close on April 11, before they plunged 14 per cent in two days, the worst slide since 1983. Silver also slumped 1.50 per cent to USD 23.06 an ounce. The preliminary reading of 50.5 for a China Purchasing Managers’ Index released by HSBC Holdings and Markit Economics compared with a final 51.6 for March, adding to concern the world’s second-biggest economy is faltering. The number was below the median 51.5 estimate. Bullion rallied for five days through yesterday, when it reached a one-week high of USD 1,439.30, as physical purchases increased. The metal fell to a two-year low of USD 1,321.95 on April 16. Volume on the Shanghai Gold Exchange's benchmark cash contract jumped to a record yesterday, while sales of gold coins at the US Mint are almost triple so far in April compared with total sales a month earlier.