SPOT gold in Shanghai fell yesterday to the lowest since February 2011, tracking losses in overseas markets, as investors expect demand for safe-haven assets to contract as the global economy improves.

The spot contract for gold of 99.99 percent purity on the Shanghai Gold Exchange shed 7 percent to 289.90 yuan (US$46.50) per gram. Gold for June delivery fell 5 percent from the previous settlement to 298.93 yuan per gram on the Shanghai Futures Exchange, the least expensive since March 2011.