Gold, little changed today in London, may decline as the dollar strengthens and oil prices drop, reducing the metal’s appeal as an alternative investment and hedge against inflation. Gold has added 2.8 percent in London this month, while the dollar has declined 9.1 percent against the euro. Oil slipped 29 percent in the period. The U.S. Energy Department will today say crude-oil stockpiles probably increased 500,000 barrels in the week ended Dec. 19, according to a Bloomberg survey. “Technical momentum signals,” used by some investors to forecast price changes, indicate the dollar may strengthen and oil prices may decline, Manqoba Madinane, a commodity analyst at Standard Bank Group Ltd. in Johannesburg, wrote in a report. With the expected increase in oil inventories “this should put further weight on precious metal investment sentiment,” he said. Gold for immediate delivery added $1.03, or 0.1 percent, to $841.23 an ounce by 8:49 a.m. in London. February futures rose $3.50, or 0.4 percent, to $841.60 in electronic trading on the Comex division of the New York Mercantile Exchange. “Given the early closes, conditions are likely to remain very thin today,” said James Moore, an analyst at TheBullionDesk.com in London, referring to the year-end holidays. “The market is likely to remain vulnerable to pockets of cash generating year-end liquidation.” Among other metals for immediate delivery in London, silver gained 1.2 percent to $10.37 an ounce. Platinum rose $10.50, or 1.2 percent, to $855 an ounce, and palladium was 0.6 percent higher at $174 an ounce.

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