Gold Cuts Weekly Drop as Ukraine Weighed With Stimulus

Gold fell, capping the first weekly drop in three weeks, on speculation that the Federal Reserve will curb monetary stimulus as the U.S. economy recovers, crimping demand for the metal as an alternative investment.

Policy makers trimmed bond purchases last week for the fourth time since November. Fed Chair Janet Yellen said May 7 that strength in the economy made measured reductions in asset purchases appropriate, even as stimulus is still needed. Bullion slumped 28 percent last year, the most since 1981, on concern the central bank would slow the pace of bond buying.