Gold dropped to a 12-week low in New York as the dollar strengthened on signs the Federal Reserve may refrain from providing more monetary stimulus for the U.S. The Fed plans to hold off quantitative easing unless economic expansion falters or prices rise at a rate slower than its 2 percent target, according to minutes of a March 13 policy meeting. The dollar advanced against the euro for a third day today. Bullion and the greenback tend to move inversely. “Gold isn’t looking a pretty picture,� Edel Tully, an analyst at UBS AG in London, wrote in a report today. “After a brief recovery, which is viewed as a limited correction, technical conditions are favoring downside again.� Futures for June delivery fell 2.6 percent to $1,628.10 an ounce by 7:49 a.m. on the Comex in New York. They dropped as much as 3 percent to $1,621.50, the lowest since Jan. 10. Bullion for immediate delivery dropped 1.2 percent to $1,626.72 an ounce in London. Bullion’s 100-day moving average moved below its 200-day measure, while the moving average convergence/divergence indicator is below zero, reinforcing a bearish trend, UBS said. Gold also declined as jewelers in India extended a nationwide strike for a 19th day today to protest a tax on non- branded ornaments. The country was the world’s second-largest bullion consumer in the fourth quarter. “The Indian domestic gold market can potentially dampen gold prices in the medium to longer term,� said Lachlan Shaw, an analyst at Commonwealth Bank of Australia. (CBA) Platinum for July delivery dropped 2.3 percent to $1,622 an ounce. Palladium for June delivery lost 1.5 percent to $649.45 an ounce. Silver for May delivery fell 4.1 percent to $31.905 an ounce, the biggest drop since March 14. To contact the reporters on this story: Maria Kolesnikova in London at mkolesnikova@bloomberg.net; Glenys Sim in Singapore at gsim4@bloomberg.net To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net

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