Gold fell for the first time in three days in London as a stronger dollar and cheaper crude oil diminished the appeal of the metal as a hedge against declines in the U.S. currency and faster inflation. The Dollar Index, a measure against six counterparts, rose as much as 0.4 percent, advancing for a second day. Crude oil fell for a second day, sliding as much as 2.5 percent. “We are seeing a stronger U.S. dollar and that is weighing on prices,” Eliane Tanner, an analyst at Credit Suisse Group AG in Zurich, said by phone. Gold for immediate delivery fell $3.88, or 0.4 percent, to $922.42 an ounce at 11:49 a.m. in London. Futures for June delivery fell $2.60, or 0.3 percent, to $923.30 on the Comex division of the New York Mercantile Exchange. Gold fell to $923.25 in the morning “fixing” in London, used by some mining companies to sell production, down from $924 at yesterday’s afternoon fixing. Gold holdings in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, increased 1.53 metric tons to 1,105.62 tons as of May 13, according to the company’s Web site. It was the first increase since April 9. Increasing concern about the economic outlook and weaker equity markets resulted in a “slight recovery in investment demand,” Eugen Weinberg, an analyst at Commerzbank AG in Frankfurt, said in a report. Platinum for immediate delivery dropped 0.9 percent to $1,105.25 an ounce, while palladium rose 1 percent to $223.50 an ounce and silver retreated 1.15 percent to $13.81 an ounce. Silver held in ETF Securities Ltd.’s exchange-traded commodities rose 6 percent since May 8 to 19.38 million ounces yesterday, according to the company’s Web site.

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