June 12 (Bloomberg) -- Gold declined in London as a stronger dollar reduced demand for the metal as an alternative investment. The U.S. Dollar Index, a six-currency gauge of the greenback’s value, rose 0.4 percent today. Gold typically moves inversely to the U.S. currency. “The dollar is going to put a little bit of pressure on gold,” Bernard Sin, the head of currency and metals trading at Swiss refiner MKS Finance SA, said by phone from Geneva. “The dollar may rebound in the short term, but longer term it’s going to continue to weaken.” Bullion for immediate delivery lost $3.49, or 0.4 percent, to $950.45 an ounce by 9:39 a.m. in London. August gold futures slipped 1.1 percent to $951.30 an ounce on the New York Mercantile Exchange’s Comex division. Investment in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, was unchanged for a fourth day at 1,132.15 metric tons yesterday, the company’s Web site showed. Silver for immediate delivery in London lost 1.5 percent to $15.17 an ounce. Platinum fell 1 percent to $1,255 an ounce, and palladium was 0.2 percent lower at $255.90 an ounce. Silver held in ETF Securities Ltd.’s exchange-traded commodities rose to a record 20.223 million ounces yesterday, from 20.194 million ounces the day before, according to data on the company’s Web site. Palladium assets gained to an all-time high 309,420 ounces, from 308,420 ounces.

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