Gold headed for a third weekly drop after investors reduced holdings on speculation that the Federal Reserve may pare stimulus as the economy recovers. Gold for immediate delivery was little changed at $1,563.60 an ounce at 2 p.m. in Singapore after swinging between gains and losses. Prices dropped to a one-week low of $1,553.65 yesterday. Holdings in the SPDR Gold Trust, the biggest exchange-traded product backed by bullion, shrank to 1,181.42 metric tons yesterday, the least since May 2010. Assets have declined 12.5 percent in 2013 as prospects for the recovery sent U.S. stocks to record highs. Data yesterday showed U.S. jobless claims fell more than forecast in the week to April 6. Several Fed officials said the central bank should begin tapering its quantitative-easing program this year and stop it by year end, according to the minutes of their March meeting, released this week. “Gold has been undermined by equity strength,� Howard Wen, an analyst at HSBC Securities (USA) Inc., wrote in a note. “We believe bullion may drift sideways near term.� Gold for June delivery was little changed at $1,562.90 an ounce on the Comex in New York, set for a third weekly drop. The Fed’s March meeting was held before a report last week that showed jobs growth was the slowest in nine months in March. Fed Chairman Ben S. Bernanke said earlier this week that U.S. economic conditions aren’t what he’d like them to be, sending prices to a one-week high on April 9. Cash silver was little changed at $27.65 an ounce, up 1.2 percent this week for the first such gain in five weeks. Spot platinum was little changed at $1,530.75 an ounce, down 0.5 percent this week in its fifth weekly decline, the longest slump since August. Palladium was little changed at $731.75 an ounce, heading for a weekly increase. To contact the reporter for this story: Glenys Sim at gsim4@bloomberg.net To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net

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