Gold, little changed in London today, may rise on speculation a weaker dollar and faster inflation will boost demand for the precious metal. The U.S. Dollar Index, a six-currency gauge of the greenback’s value, fell as much as 0.7 percent today. The precious metal typically moves in the opposite direction to the U.S. currency. Crude oil today rose to a seventh-month high as Chinese imports jumped and U.S. crude and gasoline stockpiles unexpectedly fell. “It’s only and only the dollar factor at the moment and oil has been providing additional strength,” Pradeep Unni, an analyst at Richcomm Global Services in Dubai, said today in a note. “Other true fundamentals of gold seem to have clearly taken a back stage which may be the case as long as a semblance of stability does not return to the currency markets.” Bullion for immediate delivery added 6 cents to $954.55 an ounce by 11 a.m. local time. The metal earlier traded as high as $958.08. August gold futures rose 0.1 percent to $955.40 an ounce on the New York Mercantile Exchange’s Comex division. The metal fell to $953 in the morning “fixing” in London, used by some mining companies to sell production, from $953.75 at yesterday’s afternoon fixing. Spot prices, which last week declined for the first week in five, are little changed this week. “Though higher inflation adds fodder to gold bulls, a rise in prices may be slow and steady from here on,” Unni said. “The latest concern is the widening U.S. trade and budget deficits which threaten that the massive government spending and Federal Reserve cash infusions will lead to inflation.” Fed Outlook The Federal Reserve said yesterday that the U.S. economic slump may be slowing in almost half of its regions, with the outlook at some companies improving while “stringent” loan conditions and a “weak” labor market persist. Investment in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, was unchanged for a third day at 1,132.15 metric tons yesterday, the company’s Web site showed. Silver for immediate delivery in London lost 0.1 percent to $15.17 an ounce. Platinum added 0.2 percent to $1,269.25 an ounce, and palladium was 1 percent higher at $258.17 an ounce. Platinum held in ETF Securities Ltd.’s exchange-traded commodities added 0.9 percent to 339,705 ounces yesterday, according to its Web site.

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