By Pham-Duy Nguyen Oct. 9 (Bloomberg) -- Gold fell for the first time this week on speculation that a global economic slump will reduce demand for commodities. Silver also declined. Morgan Stanley cut its forecast for gold prices by 5 percent, estimating that the metal will average $900 an ounce this year and $950 in 2009. Before today, gold gained 8.8 percent this week as investors sought a haven from plummeting equities. ``A lot of the speculative money is off to the sidelines,'' said Marty McNeill, a trader at R.F. Lafferty Inc. in New York. ``Gold is a victim of deleveraging. Eventually, it will do better than other commodities because it will hold its value.'' Gold futures for December delivery fell $17, or 1.9 percent, to $889.50 at 9:55 a.m. on the Comex division of the New York Mercantile Exchange. The price rose to a record $1,033.90 on March 17. Silver futures for December delivery dropped 8.7 cents, or 0.7 percent, to $11.685 an ounce. Before today, the price dropped 21 percent this year. The Reuters/Jefferies CRB Index of 19 raw materials has dropped 34 percent from a record in July as energy, agricultural and industrial-metal prices slid. To contact the reporter on this story: Pham-Duy Nguyen in Seattle at pnguyen@bloomberg.net.

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