Gold fell in New York, halting a three-day rally, as a stronger dollar eroded the appeal of the precious metal as an alternative asset. Silver also declined. The dollar rose against the euro on speculation that European leaders may not grant Greece additional aid, forcing the nation to restructure its debt. Gold touched a record $1,577.40 an ounce on May 2 before dropping 4.2 percent last week as the greenback climbed. “The correction in the dollar will have more room on the upside, and that’s going to pressure precious metals,” said Matt Zeman, a strategist at Kingsview Financial in Chicago. “Too many people were short the dollar and long gold. There will be additional unwinding of that trade.” Gold futures for June delivery fell $8.90, or 0.6 percent, to $1,508 at 9:45 a.m. on the Comex in New York. Before today, the metal gained 26 percent in the past year. Silver futures for July delivery fell $1.221, or 3.2 percent, to $37.265 an ounce on the Comex. The metal gained 9.1 percent in the past two days after shedding 27 percent last week. To contact the reporter on this story: Pham-Duy Nguyen in Seattle at pnguyen@bloomberg.net. To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net.

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