Gold headed for the first weekly drop in three on concern that physical purchases may be slowing as investment holdings extend a drop. Platinum and palladium headed for a third week of gains in the best run since January.
The outlook for gold, which tumbled into a bear market last month, remains bullish as central banks stick with printing money to weaken their currencies and revive growth, according to Threadneedle Investments.
Gold swung between gains and losses, after the longest run of monthly declines since 1997, as investors weighed improving global economic data amid speculation that central banks will press on with stimulus.
The cycle for gold prices, which climbed for 12 straight years, has probably turned as the recovery in the U.S. economy gathers momentum and investment holdings collapse, according to Goldman Sachs Group Inc., which reduced forecasts for the metal.