Gold fell as the dollar rose against the euro and oil prices declined, reducing the metal’s appeal as an alternative investment. Platinum gained for a seventh day on improved demand prospects. Bullion fell as the prospects of a European Central Bank rate cut pressured the euro, brining the dollar’s gain to 1.6 percent this week, as the precious metal declined 2.5 percent. Crude oil has fallen 8.4 percent as rising unemployment in the U.S. spurred concern the recession will cut fuel demand, curbing the appeal of bullion as an inflation hedge. “The dollar and oil prices have been setting the direction for gold,” Tatsuo Kageyama, an analyst at Kanetsu Asset Management Co. in Tokyo, said today by phone. “Gold prices will remain in a range before the U.S. job data later today.” Gold for immediate delivery fell 0.4 percent to $853.78 an ounce at 12:06 p.m. in Tokyo after gaining 1.7 percent yesterday. Silver for immediate delivery was down 0.1 percent at $11.13 an ounce. The euro fell, snapping two days of gains, on speculation the ECB will lower rates next week. Bundesbank President Axel Weber yesterday signaled that Germany’s central bank may have to revise down its 2009 growth forecast for the nation. The euro traded at $1.3660 at 10:22 a.m. in Tokyo from $1.3702 late yesterday in New York. The U.S. unemployment rate likely jumped in December to 7 percent, the highest level since 1993, according to the median forecast of 70 analysts surveyed by Bloomberg News. Non-farm payrolls probably fell by 525,000 last month, according to the survey. The Labor Department is scheduled to release the data at 8:30 a.m. in Washington. Crude oil rose 1.8 percent to $42.46 a barrel in electronic trading on the New York Mercantile Exchange. Indian Demand Immediate-delivery platinum gained as much as 0.8 percent to $1,000.5 an ounce on speculation demand from India will rise. It traded at $995 at 10:20 a.m. Tokyo time. “Indian jewellers yesterday stated they have launched a new platinum series of jewellery due to low prices,” crude,’’ said Akhilesh Kamkolkar, head of futures at Halifax Investment Services in Sydney. “Supply outlook is also not looking good for platinum which will also push prices higher.” The metal reached $1,005.50 on Jan. 7, the highest since Oct. 15. Palladium for immediate delivery was down 0.3 percent to $197.25 an ounce. December-delivery gold on the Tokyo Commodity Exchange added 0.7 percent to 2,513 yen per gram ($856 an ounce) at the 11 a.m. break in Tokyo. December-delivery platinum was down 3 yen at 2,931 yen a gram.

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