By Glenys Sim
Jan. 20 (Bloomberg) -- Gold declined in Asia for a second day as the dollar advanced and crude oil slumped, reducing the metal's appeal as an investment alternative and inflation hedge. Platinum fell.
The Dollar Index on ICE futures, which tracks the greenback versus six major U.S. trading partners, climbed for a second day to the highest since Dec. 10 after the pound fell on the U.K. government's second bank rescue in three months, and the euro slid before a German report today on investor confidence.
``Gold is influenced by the U.S. dollar making ground against the euro,'' David Moore, chief commodity strategist at Commonwealth Bank of Australia, said in an e-mail today.
Bullion for immediate delivery fell as much as 1.1 percent to $826.53 an ounce, and traded at $827.50 at 1:28 p.m. in Singapore. Gold for February delivery was down 1 percent at $827.20 an ounce in after-hours electronic trading on the Comex division of the New York Mercantile Exchange.
Crude oil fell below $35 a barrel in New York on speculation faltering global economic growth will drive down fuel consumption for a second year. Crude for February delivery traded at $34.08 a barrel, down 6.7 percent from Friday's close, in after-hours trading on the New York Mercantile Exchange at 1:24 p.m. Singapore time.
The contract, which expires today, fell as low as $33.89 yesterday, when floor trading was closed for the Martin Luther King holiday. Yesterday's trades will be booked today for settlement.
Among other precious metals for immediate delivery, silver was 1.1 percent lower at $11.0550 an ounce, platinum slipped 1.3 percent to $938.50 an ounce, and palladium fell 1.4 percent to $181.50 an ounce by 1:33 p.m. in Singapore.
To contact the reporter on this story: Glenys Sim in Singapore at gsim4@bloomberg.net
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