London: Gold today dropped to a two-week low as equities gained on the outlook for more central-bank stimulus, curbing demand for the metal as a haven.

Gold fell 1 per cent to USD 1,328.76 an ounce. Prices earlier touched USD 1,324.75, the lowest since July 1.

Global stocks are near the highest this year. While the Bank of England on Thursday unexpectedly kept interest rates unchanged, it signalled more stimulus will come in August to aid the economy following the UK’s vote to leave the European Union.

Speculation has also grown that Prime Minister Shinzo Abe is contemplating so-called helicopter money to revive Japan.

Gold is still up 25 per cent this year as the Brexit fallout and outlook for low US rates boosted demand for a store of value and alternative to currencies.

Meanwhile, bullion has fallen 3.4 per cent since touching a two-year high on Monday.