July 8 (Bloomberg) -- Gold fell to a two-week low in New York and London as the dollar strengthened for a fifth day, curbing demand for bullion as an alternative investment. Platinum dropped to the lowest in almost eight weeks. The U.S. Dollar Index, a six-currency measure of the greenback’s value, gained as much as 0.3 percent, heading for the longest rally since April. Gold typically moves inversely to the U.S. currency. Crude oil prices slid for a sixth day, while European and Asian equities declined. “Gold is basically reacting to the stronger dollar,” Bernard Sin, head of currency and metals trading at Swiss refiner MKS Finance SA, said by telephone from Geneva. “The dollar is the key driver for gold right now.” August gold futures lost as much as 1.5 percent to $915.20 an ounce on the New York Mercantile Exchange’s Comex division, the lowest since June 23. The contract was at $916.10 at 8:30 a.m. local time. Bullion for immediate delivery in London fell $8.22, or 0.9 percent, to $916.46 an ounce. The metal slid to $920.75 in the morning “fixing” in London, used by some mining companies to sell production, from $924 at yesterday’s afternoon fixing. Spot prices are heading for a fifth weekly decline in six. Investment in the SPDR Gold Trust, the biggest ETF backed by bullion, was unchanged at 1,120.19 metric tons yesterday, the company’s Web site showed. Oil futures slipped in New York today, heading for the longest losing streak since December, before a report forecast to show an increase in U.S. fuel inventories. Some investors use crude prices as an inflation guide. Earnings Concern The MSCI World Index of shares fell for a fifth day on concern that second-quarter earnings reports will show the first global recession since World War II is far from over. A weaker economy may cut demand for metals used more in industry. Automakers account for about 60 percent of platinum and palladium use, according to London-based metals researcher, refiner and trader Johnson Matthey Plc. Platinum futures for October fell as much as 2.6 percent to $1,106.10 on the New York Mercantile Exchange, the lowest since May 14 for a most active contract. The metal last traded at $1,107. Platinum for immediate delivery in London declined 2.6 percent to $1,104.25 an ounce. A slower economic recovery “is also bad for the car industry, because there’s less demand for platinum-group metals,” Sin said. “There was also some stop-loss selling” from Asian markets today, he said. Some investors sell commodities when prices fall below a certain threshold. Silver for September delivery fell 2 percent to $12.96 an ounce in New York, the lowest since May 4. Palladium for September was 1.5 percent lower at $237 an ounce. Palladium held in ETF Securities Ltd.’s exchange-traded commodities rose 2.3 percent to a record 329,068 ounces yesterday from 321,553 ounces the day before, according to the company’s Web site. Platinum holdings gained 1.5 percent to 328,522 ounces, and silver assets fell 2.6 percent to 18.57 million ounces.

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