London (PTI): Gold prices recorded hefty losses on Thursday in London and are headed for one of its biggest weekly drops in many years as the US dollar is advancing against its rivals, wiping off the precious metal's appeal as an alternate investment.

Spot gold plummeted nearly 11 per cent in London to trade at 905.05 dollar an ounce from its peak of 1,033 dollar on March 17, while the silver dropped by 13 per cent at 17.32 dollar an ounce from the highest of 22 dollar level.

Meanwhile, US dollar is advancing against euro.

Analysts said it was difficult to predict further move in the precious metal as the UK will remain closed for 'Good Friday and 'Easter Monday' and reopens on Tuesday only.

Gold has climbed 39 per cent in the past year as the dollar weakened and investors sought a safe investment option amidst the turmoil in global financial markets.

The dollar has snapped its weakening trend after the US Federal Reserve cut lending interest rate by 75 basis points this week.