Gold declined for a second day as holdings in the largest bullion backed exchange-traded product dropped to the lowest level in more than four years amid speculation the Federal Reserve will curb stimulus. Bullion for immediate delivery lost as much as 0.3 percent to $1,382.06 an ounce before trading at $1,383.79 by 12:40 p.m. in Singapore. Prices are little changed this week after dropping 0.4 percent a week earlier. Gold for August delivery climbed 0.4 percent to $1,383.60 an ounce on the Comex after falling 1 percent yesterday when a report showed fewer Americans than forecast filed applications for jobless benefits. Assets in the SPDR Gold Trust fell 0.6 percent to 1,003.53 metric tons yesterday, according to data on the company’s website. That’s the biggest fall since May 21 and the lowest level since February 2009, data compiled by Bloomberg showed. Fed Chairman Ben S. Bernanke said on May 22 the central bank could reduce its $85 billion monthly bond purchases if the employment outlook shows a sustainable improvement. “The market’s watching what the Fed is going to do,� said David Lennox, an analyst at Fat Prophets in Sydney. “We’ll be watching for indications from Bernanke about when it might end� quantitative easing, he said by phone today. Gold has declined 17 percent this year on concern that as the U.S. economy improves the Fed may scale back debt purchases that helped bullion cap a 12-year bull run in 2012. Reports in the U.S. yesterday showed retail sales rose more than forecast in May and jobless claims dropped to 334,000 in the week ended June 8 from 346,000 in the prior period. Indian Imports Gold traders turned bearish for the first time in a month as investors reduced holdings in ETPs and India, the biggest buyer, announced curbs on imports. Eighteen analysts surveyed by Bloomberg expect prices to fall next week, with 14 bullish and four neutral, the largest proportion of bears since May 17. Holdings in ETPs fell to 2,117.96 tons yesterday, the least since March 2011, data compiled by Bloomberg show. Imports by India are declining as an increase in tax and restrictions on shipment financing boost costs for jewelers, Rajesh Mehta, chairman of Rajesh Exports Ltd., said yesterday. Silver for immediate delivery declined 0.6 percent to $21.736 an ounce, trimming the weekly gain to 0.4 percent. Spot palladium fell 0.2 percent to $732.40 an ounce, down 3.4 percent this week. Platinum rose 0.2 percent to $1,457.10 an ounce, trimming this week’s decline to 3 percent. To contact the reporter for this story: Phoebe Sedgman in Melbourne at psedgman2@bloomberg.net To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net

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