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US gold drops to two-month low after jobless claims

NEW YORK, Jan 20 (Reuters) - Gold futures fell to a two-month low below $1,350 an ounce on Thursday, losing 1.5 percent as a more-than-expected fall in U.S. initial jobless claims dented the metal's safe-haven demand.

The February gold contract dropped $21.8 or 1.8 percent to $1,348.40 an ounce at 8:41 a.m. EST (1341 GMT) on the COMEX division of NYMEX. It hit a session low of $1,345 to mark its cheapest since Nov. 19. (Reporting by Frank Tang; Editing by John Picinich)