By Nicholas Larkin and Glenys Sim Oct. 23 (Bloomberg) -- Gold gained in New York and London on concern that the dollar will weaken further, boosting demand for the metal as an alternative investment. The dollar was little changed against the euro after earlier falling to a 14-month low, while gold futures traded near the record $1,072 an ounce they reached on Oct. 14. Bullion has climbed 1.3 percent this week and the dollar has lost 1.2 percent against the euro. Gold “has been consolidating for the past 10 days,” wrote Dennis Gartman, an economist and editor of the U.S.-based Gartman Letter. “Next is advancement again and the weak and weaker U.S. dollar shall be the eventual catalyst for that to happen.” December gold futures gained $5.80, or 0.6 percent, to $1,064.40 an ounce on the New York Mercantile Exchange’s Comex division by 8:37 a.m. local time. The commodity is heading for a fourth weekly gain. Immediate-delivery bullion added 0.4 percent to $1,063.85 in London. The metal rose to $1,061.25 an ounce in the morning “fixing” in London, used by some mining companies to sell production, from $1,053 at yesterday’s afternoon fixing. Spot prices are up 21 percent this year and set for a ninth consecutive annual increase, the best performance since at least 1948. The dollar index is down 7.5 percent this year. Survey’s Forecast Thirteen of 25 traders, investors and analysts surveyed by Bloomberg, or 52 percent, said bullion would rise next week as investors seek an alternative investment to a weakening dollar. Eight forecast lower prices and four were neutral. “Gold prices will continue to be influenced heavily by dollar movements,” HSBC Securities analyst James Steel wrote in a note e-mailed today. “Should the dollar weaken, gold is likely to remain well bid.” Gold holdings in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, were unchanged at 1,108.09 metric tons yesterday, according to the company’s Web site. The fund’s holdings reached a record 1,134 tons on June 1. Silver for December delivery in New York gained 1.5 percent to $17.81 an ounce. The metal will average $15.10 an ounce next year, up from a previous estimate of $12 an ounce, BNP Paribas SA analyst Anne-Laure Tremblay said in an e-mailed report today. “We expect a soft patch this year/early next year in the economy, as the consumption outlook remains downbeat,” causing silver prices to weaken in the next six months, Tremblay said. “A fresh rally should be initiated in the second half of 2010 as the U.S. dollar outlook turns sour again.” Platinum for January delivery rose 0.4 percent to $1,374.90 an ounce, while palladium for December delivery was 0.4 percent lower at $338.45 an ounce. Rhodium for immediate delivery added $25, or 1.4 percent, to a one-year high of $1,875 an ounce, according to prices from metals researcher and trader Johnson Matthey Plc on Bloomberg. Silver held in ETF Securities Ltd.’s exchange-traded commodities products increased 0.5 percent to a record 21.199 million ounces yesterday, according to the company’s Web site.

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