Gold fell in New York, heading for a third straight weekly loss, as equities rallied worldwide, reducing demand for the precious metal as an alternative investment. Silver also declined. Shares in Asia, Europe and the U.S. climbed on speculation that American banks will pass government stress tests. Investment in the SPDR Gold Trust, the biggest exchange-traded fund backed by bullion, hasn’t changed for four straight sessions. Before today, the Standard & Poor’s 500 Index rose 21 percent since March 6, when it touched a 12-year low, as gold fell 6 percent. “The resiliency of the stock market recently suggests that gold prices should continue to remain under pressure in the short term,” said Tom Pawlicki, a metals analyst at MF Global Ltd. in Chicago. “Gold prices will receive fundamental pressure from a lack of ETF inflows and from weak demand in key consumer India.” Gold futures for June delivery fell $4.20, or 0.5 percent, to $881.70 an ounce at 11:49 a.m. on the Comex division of the New York Mercantile Exchange. A close at that price would leave the metal down 3.1 percent this week. Gold was up 0.2 percent this year through yesterday. Silver futures for May delivery slid 8.5 cents, or 0.7 percent, $12.255 an ounce. The metal gained 9.3 percent this year before today. Wells Fargo & Co., the second-biggest U.S. home lender, reported first-quarter profit that exceeded the most optimistic Wall Street estimates, sparking a rally in bank shares. Gold and other safe-harbor assets including U.S. Treasuries fell. Bullion held by the SPDR Gold Trust has remained at 1,127.37 metric tons since April 3. Investment in the ETF is up 44 percent this year. U.S. markets are closed tomorrow in observance of religious holidays.

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