By Nicholas Larkin July 23 (Bloomberg) -- Gold rose to the highest in almost six weeks on London as a weaker dollar increased demand for the metal as an alternative investment. The dollar lost as much as 0.3 percent against the euro today, near a seven-week low. Gold, which today reached its highest price since June 12, tends to move inversely to the U.S. currency. Global equities gained for a ninth day. “Almost all the recent momentum is coming on the back of recent dollar weakness,” Pradeep Unni, a Richcomm Global Services analyst in Dubai, said today in a report. “Earlier this month economic worries encouraged investors to buy the dollar and U.S. Treasuries. Appetite for other assets including gold and equities seems to be returning.” Bullion for immediate delivery gained as much as $5.66, or 0.6 percent, to $957.05 an ounce. The metal, which traded at $955.38 by 10:32 a.m. in London, is heading for a second weekly gain. August gold futures rose 0.2 percent to $955.60 an ounce on the New York Mercantile Exchange’s Comex division. The MSCI World Index of shares today added 0.1 percent, set for its longest stretch of gains since December 2003. The dollar has lost 1.4 percent against the euro this month as gold has added 3.1 percent. Investment in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, fell for a second day yesterday, falling 5.8 metric tons to 1,086.61 tons, the company’s Web site showed. The fund reached a record 1,134.03 tons on June 1. Waning Demand “We fear that there will be very few buyers above $955 an ounce,” Andrey Kryuchenkov, a VTB Capital analyst in London, said today in a note. “Investor demand is waning and it is too early for a seasonal pick-up in jewelry demand.” Sales of 1-ounce American Eagle gold coins fell to 68,167 in the three months to July, from 114,000 at the end of the first quarter, according to a World Gold Council report. Silver for immediate delivery in London added 1.1 percent to $13.84 an ounce, the highest in three weeks. Platinum gained 0.3 percent to $1,180.50 an ounce, and palladium was 0.8 percent higher at $256.90 an ounce. To contact the reporter on this story: Nicholas Larkin in London at nlarkin1@bloomberg.net

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