Gold fell for the first time in four sessions in New York and London as an improved economic outlook in Europe trimmed investment demand for the metal. Growth in Europe’s manufacturing industry accelerated to 56.7, a three-month high and more than previously estimated in July, Markit Economics said today. Gold rose to a record on June 21 as concern about sovereign debt crisis in Greece, Portugal and Spain contributed to investment demand. “It’s a risk-on day, and safe-haven buying seems to have stopped,” Stephen Briggs, an analyst at BNP Paribas SA in London, said today by phone. Futures for December delivery declined $4.80, or 0.4 percent, to $1,179.10 an ounce at 8:19 a.m. on the Comex in New York. Gold for immediate delivery shed 0.3 percent to $1,177.23 in London. Any gains for spot metal may be capped around $1,190 an ounce, which marks the 20-day moving average, said David Thurtell, an analyst at Citigroup Inc. in London. Bullion rose to $1,178 an ounce in the morning “fixing” in London, used by some mining companies to sell output, from $1,169 at the afternoon fixing on July 30. Spot gold fell 4.9 percent last month, the most since December, as investment-related purchases subsided. Investment interest via exchange-traded products fell for a third session on July 30, according to a Barclays Capital report today. Holdings slid 3.9 tons to 2,064.9 metric tons, almost 40 tons below the peak, the bank said. SPDR Assets Holdings in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, dropped 19 percent, the most in more than two years, on July 28. They were unchanged at 1,282.28 tons as of July 30, according to the company’s Web site. Still, demand for physical gold has picked up since last week, Walter de Wet, head of commodities research at Standard Bank Plc in London, wrote in a report today. “Metal continues to flow toward countries such as India and Turkey in anticipation of a rise in seasonal demand,” he said. Hedge funds and other large speculators increased their net-long position by 5.9 percent in New York gold futures in the week ended July 27, according to U.S. Commodity Futures Trading Commission data. That’s the first increase in a month. Silver for September delivery increased 0.5 percent to $18.090 an ounce in New York. October-delivery platinum advanced 0.5 percent to $1,584.90 an ounce and palladium dropped 0.4 percent to $498 an ounce.

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