Has gold lost its glitter?

Gold dropped to its lowest in more than two months as investor risk appetite increased, reducing the metal's appeal as a haven.

Bullion has tumbled 5 percent in three days on growing optimism that the world financial crisis may be easing. Asian stocks advanced for a fourth day after Federal Reserve Chairman Ben S. Bernanke said policy responses were helping to unfreeze credit markets.

The price decline is "likely reflecting diminished safe-haven interest", David Moore, chief commodity strategist at Commonwealth Bank of Australia, wrote. Some investors buy gold to preserve their wealth at times of financial crisis, selling when perceived risks have declined.