Gold plunged below $1,650 an ounce on Thursday, down more than 1 percent, and to its lowest since August as heavy liquidation by hedge funds and signs of an improving US economy triggered selling. The metal broke below its 200-day moving average, which it had held for four months, as safe-haven bidding faded following a government report that showed the US economy grew at a faster-than-expected 3.1 percent annual rate in the third quarter.

Silver also dived over 3 percent and platinum group metals each fell around 2 percent. Spot gold was down 1.1 percent at $1,647.40 an ounce by 4:13 pm EST (2113 GMT), having hit a low of $1,635.09, which marked the weakest since August 22. Silver, which often displays higher volatility than gold, was down 3.4 percent to $29.94, having hit a four-month low of $29.60 an ounce. Among platinum group metals, platinum dropped 2.7 to $1,544.50 an ounce, while palladium slipped 2.1 percent to $676.50.

Copyright Reuters, 2012