Gold dropped to a 12-week low in New York as the dollar strengthened on signs the Federal Reserve may refrain from providing more monetary stimulus for the U.S.

Gold rose to $1,700 last week and is holding that level in a very tight trading range.

Gold climbed for a second day as record bullion holdings in exchange-traded products signaled stronger investor demand, while Greece’s progress toward a second bailout boosted the appeal of equities and commodities.

In 2011 investors saw gold perform outstandingly in the quiet season in July, August. $2,000 looked a certainty before the end of the year, but then unusual forces pummelled the gold price and all other global financial markets.