SINGAPORE(BullionStreet): Gold dropped in Asian trade Thursday after a positive outlook on global economic scenario dented it's safe haven appeal.

Gold for immediate delivery was seen trading at $1682.47 an ounce at 12.00 noon Singapore time while US gold was seen trading at $1682.61 an ounce on the comex division of nymex.

Spot silver dropped 0.7 percent to $32.03 an ounce, taking a breather after an eight-day rally, the longest winning streak since April 2011 when prices marched to a record high near $50.

Analysts however said the precious yellow metal is likely to extend gains on strong physical orders from China ahead of the Lunar New Year holidays.

For the last few days, gold failed to breach key resistance at $1,700 an ounce over the last few days, lacking fresh impetus as a generally improving economic outlook steers investors towards riskier assets.

Market participants are also waiting for a U.S. Federal Reserve policy meeting next week, which could shed light on the future of its ultra-loose monetary policy, which has been a main driver of gold prices in the past two years.

Meanwhile, holdings of SPDR Gold Trust, the world's top gold-backed exchange-traded fund, eased slightly to 1,334.115 tonnes, down 16.7 tonnes so far this year, but still up more than 6 percent from a year earlier.

On Wednesday, gold fell for a second day after a survey showed China’s manufacturing growing at the fastest pace in two years and the International Monetary Fund said global growth will accelerate this year, curbing haven demand.