By Glenys Sim Dec. 9 (Bloomberg) -- Gold traded little changed in Asia as the dollar gained, eroding the appeal of the precious metal as an alternative investment. Platinum declined. The dollar advanced as much as 0.5 percent against a weighted basket of six major currencies, paring yesterday’s 1.8 percent loss after U.S. President-elect Barack Obama’s pledge to spend more on infrastructure boosted stocks and reduced the currency’s haven appeal. “In the near term, gold prices may be hostage to financial markets’ evaluation of the Obama stimulus plan,” James Steel, an analyst at HSBC Securities in New York, said in a report today. “Whether gold will be able to sustain Monday’s rally will depend in large part on the direction of the U.S. dollar.” Bullion for immediate delivery fell 17 cents to $772.53 an ounce at 10:35 a.m. in Singapore. Gold for February delivery added 0.4 percent to $772.50 an ounce in after-hours electronic trading on the Comex division of the New York Mercantile Exchange. Obama pledged Dec. 6 to boost the economy with the biggest public-works spending package since the 1950s, including investment in roads, bridges and public buildings. The dollar was at $1.2868 euro from $1.2963 late in New York yesterday. It reached $1.2563 on Dec. 2, the lowest since Nov. 21. Gold for October delivery dropped 1.9 percent to 2,293 yen a gram ($768 an ounce) on the Tokyo Commodity Exchange at the 11 a.m. local time break. Shanghai gold for June delivery added 0.9 percent to 169.98 yuan a gram ($767 an ounce). Platinum Falls Immediate-delivery platinum fell 2.4 percent to $812 an ounce at 10:06 a.m. Singapore time. The metal used in vehicle catalytic converters rose the most in two weeks yesterday after Congressional Democrats sent President George W. Bush a draft proposal for a $15 billion, short-term rescue of U.S. automakers and said it will likely be voted on this week. The metal for January delivery was down 3.3 percent at $815.60 an ounce in New York, and October-delivery platinum on the Tokyo Commodity Exchange lost 5.1 percent to 2,398 yen a gram. “If passage of the plan is delayed, we believe that the platinum group metals might give up considerable ground on disappointed selling,” said Steel. Automakers account for more than 60 percent of global platinum consumption, according to estimates by Johnson Matthey Plc, a London-based metals refiner, trader and researcher. Palladium, as well as platinum, is used to make catalytic converters for car and truck exhaust systems. Among other precious metals for immediate delivery, silver was little changed at $10 an ounce, and palladium was up 2.1 percent at $180.75 an ounce. To contact the reporter on this story: Glenys Sim in Singapore at gsim4@bloomberg.net

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