Gold fell in New York as a stronger dollar curbed demand for an alternative investment, narrowing the biggest weekly gain since October 2011 after Federal Reserve Chairman Ben S. Bernanke called for maintaining stimulus.
Bullion futures climbed the previous four days, the best run since March. The dollar increased 0.5 percent against six major currencies today, after a 2.2 percent two-day slide from a three-year high. St. Louis Fed President James Bullard, who has advocated an increase in asset purchases if inflation slows, is due to speak today.
Gold slid 24 percent this year, wiping $60.6 billion from the value of gold exchange-traded product holdings, after some investors lost faith in the metal as a store of value. The drop accelerated after Bernanke said June 19 that bond buying could slow if the economy improves. His comments on July 10 that the U.S. still needs very stimulative monetary policy were on the same day minutes of a June meeting showed division among policy makers on when to slow and end stimulus.
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