Gold Drops as Inflation Expectations Curb Precious-Metal Demand

Gold declined in New York on speculation that slowing inflation will curb demand for the metal as a hedge against rising consumer prices.

Federal Reserve Bank of St. Louis President James Bullard said in an interview in New York that the central bank may keep its monetary policy unchanged until late this year, and that declining inflation expectations have lessened the need to begin withdrawing record stimulus. Gold futures have dropped 5.4 percent from a record $1,577.40 an ounce on May 2.