Gold extended its biggest weekly drop since March after the Standard & Poor’s 500 Index climbed to a record and hedge funds pared bets on a rally in the metal at the fastest pace this year.
Bullion for immediate delivery lost as much as 0.3 percent to $1,246.50 an ounce and was at $1,247.01 by 9:30 a.m. in Singapore, according to Bloomberg generic pricing. Gold dropped 3.3 percent last week, touching $1,242.33 on May 30, the lowest since Feb. 3. The metal for August delivery rose 0.1 percent to $1,247.30 an ounce on the Comex in New York.
The S&P 500 closed at an all-time high of 1,923.57 on May 30, advancing 4.1 percent this year. Money managers trimmed their net-long position by 24 percent in the week to May 27, U.S. Commodity Futures Trading Commission data show. Assets in the SPDR Gold Trust, the largest exchange-traded product backed by bullion, contracted for a second month after dropping to 776.89 tons on May 21, the lowest since December 2008.