Gold up as physical purchases temper drop in holdings

London, Apr 24. Gold today rebounded from the biggest drop in a week, as signs of increased physical purchases tempered shrinking assets in exchange-traded products. The precious metal climbed USD 7,80, or 0.55 per cent, to USD 1,421.40 an ounce, poised for a sixth gain in seven sessions. Silver also increased 0.22 per cent to USD 22.99 an ounce. The volume for the Shanghai Gold Exchange's benchmark cash contract exceeded 150 tonnes in the past week, while the US Mint ran out of its smallest American Eagle bullion coin. Gold is still 8.8 per cent below the April 11 close of USD 1,561.45 an ounce that preceded a 14 per cent slump in two sessions through April 15, the biggest tumble since 1983. Bullion is down 15 per cent in 2013 after 12 years of advances and touched a two-year low of USD 1,321.95 on April 16. Assets held in the SPDR Gold Trust, the largest bullion exchange-traded fund, tumbled yesterday to a 42 month low of 1,097.2 tonnes and have contracted 10 per cent this month.