By Feiwen Rong
Nov. 13 (Bloomberg) -- Gold traded little changed near a three-week low as gains by the dollar and falling oil prices reduced the appeal of the metal as an alternative asset.
The dollar rose for a sixth day, reaching a two-week high against a basket of six major currencies, and oil fell to a 21- month low as economies in Europe and Asia weakened. Gold and platinum often move in the opposite direction of the greenback.
The dollar's gains and weaker oil prices ``weighed on the gold market,'' Darren Heathcote, head of trading at Investec Bank Ltd., said in a report today. ``Strong physical demand helped keep gold's price from tumbling as much as crude oil and major stock indexes.''
Bullion for immediate delivery rose 0.3 percent to $714.45 an ounce at 10 a.m. in Singapore. Silver for immediate delivery was little changed at $9.3525 an ounce.
Gold fell 14 percent the past month as the U.S. currency's 7 percent gain reduced the appeal of dollar-denominated commodities. Crude oil fell 32 percent the same time and slumped to $55.03 a barrel earlier today, the lowest since Jan. 30, 2007, on speculation slowing growth will curb global fuel demand.
Shares in the U.S., the world's biggest economy and largest oil consumer, have fallen about 8 percent this week, on the prospect of weaker consumer spending and widening credit market losses.
December-delivery gold fell 0.7 percent at $713.40 an ounce in after-hours electronic trading on the Comex division of the New York Mercantile Exchange.
Gold for October delivery in Tokyo tumbled by 150 yen, the maximum allowed in one day, to 2,176 yen a gram ($706 an ounce). It was at 2,195 yen at the 11 a.m. local time break.
To contact the reporter on this story: Feiwen Rong in Singapore at frong2@bloomberg.net
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