Gold fell in New York, erasing earlier gains, as a rally in equities eroded the appeal of the precious metal as an alternative investment. Silver rose. U.S. stocks rose, snapping a two-day slump. Investment in the SPDR Gold Trust, the biggest exchange-traded fund backed by bullion, has remained unchanged for three straight sessions. Before today, the Standard & Poor’s 500 Index gained 19 percent since March 6, when it touched a 12-year low, while gold dropped 6.3 percent. “Pressure will come from the recent slowdown in investment demand,” said Tom Pawlicki, a metals analyst at MF Global Ltd. in Chicago. “Investment demand will move inverse to equities.” Gold futures for June delivery fell $1.40, or 0.2 percent, to $881.90 an ounce at 10:16 a.m. on the Comex division of the New York Mercantile Exchange, after earlier trading as high as $890.80. Gold is down 0.1 percent this year through yesterday. Silver futures for May delivery rose 2 cents, or 0.2 percent, $12.23 an ounce. The metal gained 8.1 percent this year before today.

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