Gold futures dropped to a two-week low as Germany’s business confidence rose more than forecast, bolstering the outlook for Europe’s largest economy and eroding the appeal of the precious metal as a haven.

The Ifo institute’s business climate index in January climbed to 104.2, the highest since June. In the U.S., claims for jobless benefits last week fell to a five-year low, the Labor Department said yesterday. Gold has declined this month, while the MSCI All-Country World Index of equities has climbed more than 4 percent.

Gold futures for February delivery declined to $1,655.00 an ounce, the lowest since Jan. 11, on the Comex in New York, heading for the third straight decline.