June 10 (Bloomberg) -- Gold rose for a second day in London as the dollar extended losses, increasing demand for the precious metal as an alternative investment. The U.S. Dollar Index, a six-currency gauge of the greenback’s value, fell as much as 0.5 percent on speculation the global recession is easing, spurring demand for riskier assets. Gold typically gains when the dollar weakens. “The yellow metal has rallied” on “the weaker dollar, and for the moment the traditionally inverse relationship appears to be back in place,” James Moore, an analyst at TheBullionDesk.com in London, said today in a note. “Dips continue to be limited by strong buying interest as inflation fears overshadow economic ‘green shoots’ sentiment.” Bullion for immediate delivery climbed as much as $8.62, or 0.9 percent, to $963.40 an ounce and traded at $961.50 by 9:35 a.m. local time. August gold futures gained $7.50, or 0.8 percent, to $962.20 an ounce on the New York Mercantile Exchange’s Comex division. European and Asian equities and U.S. index futures advanced as a report on Australian consumer confidence added to evidence that the global economy is improving. Investment in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, was unchanged at 1,132.15 metric tons yesterday, the company’s Web site showed. Gold held in ETF Securities Ltd.’s exchange-traded commodities added 0.3 percent to a record 7.676 million ounces yesterday, according to the company’s Web site. Silver for immediate delivery in London added 0.9 percent to $15.385 an ounce. Platinum rose 1.2 percent to $1,268.50 an ounce, and palladium was 1.2 percent higher at $258.15 an ounce. Platinum held in ETF Securities’ ETCs rose 3.3 percent to 336,693 ounces yesterday, according to its Web site.

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