July 6 (Bloomberg) -- Gold fell to the lowest in almost two weeks in London as the dollar strengthened and oil slid, curbing demand for the precious metal as an alternative investment and hedge against accelerating consumer prices. Silver dropped. The U.S. Dollar Index, a six-currency measure of the greenback’s value, gained for a third day, climbing as much as 0.5 percent. Gold typically moves inversely to the dollar. Crude oil fell to a five-week low, while European and Asian equities slid on concern that the global economic recovery will falter. “A stronger greenback has prompted fresh pressure,” James Moore, an analyst at TheBullionDesk.com in London, said in a note today. “Due to limited physical interest and tepid investment demand,” gold is at “risk,” he wrote. Bullion for immediate delivery fell as much as $11.30, or 1.2 percent, to $920.95 an ounce, the lowest since June 23. The metal traded at $922.13 at 11:40 a.m. in London. August gold futures lost 1 percent from July 2 to $921.60 an ounce on the New York Mercantile Exchange’s Comex division. Most U.S. markets were shut July 3 for the Independence Day holiday. The metal slid to $921.50 an ounce in the morning “fixing” in London, used by some mining companies to sell production, from $932.50 at the afternoon fixing on July 3. Spot prices fell 0.8 percent last week, a fourth drop in five weeks. Crude oil declined on speculation that a slower economic recovery will hurt demand. The fuel dropped as much as 4.5 percent to a five-week low of $63.75 a barrel in New York. Selling Side ‘Ideal’ “The slide in oil prices may keep prices subdued,” Pradeep Unni, a Richcomm Global Services analyst in Dubai, said of bullion in a note today. “Fresh buying could be limited and slow. It’s ideal to be on the selling side.” The MSCI World Index of shares, which today declined to the lowest in almost two weeks, has dropped the past three weeks after climbing to a seventh-month high. “If equities remain weak through U.S. trading, combined with further dollar strength, then gold could target the recent low at $913-$914 an ounce,” John Reade, UBS AG’s head metals strategist in London, said today in a note. Silver for immediate delivery in London fell 2.4 percent to $13.0750 an ounce, the lowest since May 5. Platinum dropped 2.3 percent to $1,154.75 an ounce, the lowest since May 29, and palladium was 1.7 percent lower at $243.50 an ounce. Palladium held in ETF Securities Ltd.’s exchange-traded commodities rose 1.4 percent to a record 321,748 ounces on July 3 from 317,228 ounces the day before, according to the company’s Web site. Gold, silver and platinum holdings were either unchanged or little changed.

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