By Nicholas Larkin July 23 (Bloomberg) -- Gold, little changed in New York and London after reaching the highest in almost six weeks today, may gain as a weaker dollar spurs demand for the precious metal as an alternative investment. The dollar was little changed after earlier losing as much as 0.3 percent against the euro, near a seven-week low. Gold, which today reached its highest price since June 12, tends to move inversely to the U.S. currency. The MSCI World Index of shares gained for a ninth day. “Almost all the recent momentum is coming on the back of 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 Treasuries. Appetite for other assets, including gold and equities, seems to be returning.” Gold futures for August delivery added 80 cents to $954.10 an ounce on the New York Mercantile Exchange’s Comex division by 8:24 a.m. local time. Bullion for immediate delivery in London rose 0.3 percent to $954.15 an ounce. The metal climbed to $955.25 in the morning “fixing” in London, used by some mining companies to sell production, from $948.25 at yesterday’s afternoon fixing. The MSCI index added as much as 0.2 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 futures have added 2.9 percent. SPDR Holdings Investment in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, fell for a second day yesterday, sliding 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. “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 pickup in jewelry demand.” Sales of 1-ounce American Eagle gold coins were 68,167 in the three months to July, down 40 percent from 114,000 at the end of March, according to a World Gold Council report. Silver for September delivery added 0.3 percent to $13.74 an ounce in New York, the highest in three weeks. Platinum for October rose 0.7 percent to $1,183.50 an ounce. Palladium for September was 0.9 percent higher at $258.45 an ounce. To contact the reporter on this story: Nicholas Larkin in London at nlarkin1@bloomberg.net

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