Sept. 14 (Bloomberg) -- Gold declined as gains by the dollar and falling oil prices sapped demand for the precious metal as an alternative investment. Bullion, which typically moves inversely to the dollar, snapped a two-day advance as crude oil dropped to a one-week low and Asian stocks fell. The Dollar Index, a six-currency gauge of the U.S. currency’s value, rose 0.4 percent after six days of declines. “Gold is in a modest consolidation stage as the dollar rebounded,” said Hwang Il Doo, a senior trader with KEB Futures Co. in Seoul. “The upward momentum over the longer term remains intact as more people are looking for shelter from a potentially inflationary environment.” Gold for immediate delivery fell 0.2 percent to $1,002.88 an ounce at 10:45 a.m. in Singapore. The metal reached $1,011.95 on Sept. 11, an 18-month high, and has gained 14 percent this year. The dollar index is down 5.4 percent this year. The MSCI Asia Pacific Index of regional shares lost 1.6 percent, ending two days of gains, as commodity prices fell and a stronger yen hurt Japanese exporters. Oil dropped as much as 1.8 percent on speculation crude’s rally to more than $72 a barrel last week outpaced the recovery in the global economy. Among other precious metals for immediate delivery, silver fell 0.7 percent to $16.64 an ounce and platinum slumped 0.8 percent to $1,307.25 an ounce. Palladium climbed 0.3 percent to $292.75. To contact the reporter on this story: Kyoungwha Kim in Singapore at Kkim19@bloomberg.net

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