Gold Prices Drop to 16-Week Low

Gold prices sank to their lowest level in 16 weeks as worries about political friction in Eastern Europe subsided and amid signs that the U.S. economy continues to recover from a winter slowdown.

The most actively traded contract, gold for August delivery, fell $2.60, or 0.2%, to settle at $1,257.10 a troy ounce on the Comex division of the New York Mercantile Exchange. This was the lowest settlement level since Feb. 4.