Gold gained for a second day in London as concern about Greece’s debt woes and a weaker dollar spurred demand for the metal as an alternative investment. The dollar fell versus the euro on speculation Greece’s debt crisis won’t prevent the European Central Bank from raising interest rates next week. Police fired tear gas to disperse protesters in Athens as labor unions shut down government services before Greece’s parliament votes on an austerity package needed to secure more financial aid. Gold “might be in a win-win situation as if the vote is passed the dollar will likely fall and that will boost metal prices, while if the vote fails then safe-haven buying could kick in,” William Adams, an analyst at Basemetals.com in London, said today in a report. Immediate-delivery gold rose $6, or 0.4 percent, to $1,507.40 an ounce by 9:10 a.m. in London. The metal typically moves counter to the greenback. Gold for August delivery was up 0.5 percent at $1,507.80 an ounce on the Comex in New York. ECB President Jean-Claude Trichet said yesterday that policy makers are in “strong vigilance mode,” supporting expectations for an interest-rate increase at the central bank’s meeting on July 7. The ECB raised its benchmark rate in April for the first time in almost three years, lifting it by a quarter point to 1.25 percent. Gold is up 6.1 percent in 2011 after climbing the past 10 years, the longest run of gains in at least nine decades. Europe’s debt crisis helped bullion reach a record $1,577.57 on May 2. Greece is trying to avoid the euro area’s first default. Prime Minister George Papandreou has called on lawmakers to “do their patriotic duty” and pass the 78 billion-euro ($112 billion) austerity package. That, and a successful vote tomorrow to authorize implementation of the plan, would enable Finance Minister Evangelos Venizelos to appear at a meeting of finance ministers this weekend in Brussels. Silver for immediate delivery rose 1.1 percent to $34.315 an ounce in London. Palladium was little changed at $740.25 an ounce. Platinum was up 0.9 percent at $1,705.50 an ounce. To contact the reporter for this story: Nicholas Larkin in London at nlarkin1@bloomberg.net To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net

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