2014.04.1715:03:00UTC+00Gold Ends Below $1,300, Sheds 1.9% For Week

Gold futures ended at a two-week low on Thursday, with investors shifting focus away from the yellow metal following an uptick in global equities markets on the back of some encouraging economic reports from the U.S. and China recently.

The safe haven appeal of the precious metal waned after investors opted for the more riskier equity assets, with most global equity markets on the rise. Nonetheless, concerns over the ongoing uncertainties in eastern Ukraine continued to persist.

For the week, gold shed about 1.9 percent.

The U.S. Federal Reserve Chair Janet Yellen's statement on Wednesday that accommodative monetary policy will continue for some time also helped lift sentiment in equities markets.

In economic news, growth in Philadelphia-area manufacturing activity touched a seven-month high, accelerating much more than anticipated in April, a Federal Reserve Bank of Philadelphia's survey showed. Meanwhile, first time unemployment benefit claims in the U.S. rebounded last week, after having reported its lowest level in almost seven years in the previous week, a Labor Department report showed.

Gold for June delivery, the most actively traded contract, dropped $9.60 or 0.7 percent to close at $1,293.90 an ounce on the Comex division of the New York Mercantile Exchange on Thursday.

Gold for April delivery scaled an intraday high of $1,304.40 and a low of $1,292.80 an ounce.

On Wednesday, gold futures edged up on inflation concerns in the U.S., fueling speculations of a possible Federal Reserve rate hike in the near term, before Yellen's statement.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, dropped to 798.43 tons on Thursday, from Wednesday's close of 806.82 tons.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 79.82 on Thursday, down from its previous close of 79.83 late Wednesday in North American trade. The dollar scaled a high of 79.85 intraday and a low of 79.58.

The euro traded higher against the dollar at $1.3822 on Thursday, as compared to its previous close of $1.3816 late Wednesday in North America. The euro scaled a high of $1.3864 intraday and a low of $1.3812.

In economic news, data from the U.S. Labor Department showed initial jobless claims were slightly up from its lowest level since 2007, coming in 304,000 for the week ended April 12, an increase of 2,000 from the previous week's revised level. The previous week's level was revised up by 2,000 from 300,000 to 302,000.

Meanwhile, growth in Philadelphia-area manufacturing activity accelerated much more than anticipated in April, the Federal Reserve Bank of Philadelphia's Business Outlook Survey showed Thursday. The Philly Fed's diffusion index of current activity climbed to 16.6 in April from 9.0 in March, with a positive reading indicating growth in regional manufacturing activity. Economists expected the index to edge up to a reading of 10.0.

Elsewhere, the Japanese government downgraded its assessment of the economy for the first time since November 2012. In its monthly report, the Cabinet Office said the Japanese economy is on a moderate recovery trend, while some weak movements are seen lately due to a reaction after a last-minute rise in demand before a consumption tax increase.