By Luzi Ann Javier Feb. 16 (Bloomberg) -- Gold gained for a second day on speculation the dollar may weaken as investors await the measures the European Union may take to rescue debt-laden Greece. The Dollar Index, which tracks the value of the greenback against six major currencies including the euro, fell for the first time in three sessions, losing 0.2 percent to 80.244 at 10:33 a.m. Singapore time. “It will be the U.S. dollar play that will affect commodities,” Jonathan Barratt, managing director at Commodity Broking Services Pty in Sydney, said by phone today. “If we get a relief from the EU, in terms of a solid outcome then we’ll get a rally in the euro and obviously that will cause weakness in the U.S. dollar,” making precious metals more attractive to investors, he said. Gold for immediate delivery gained $4.25, or 0.4 percent, to $1,105.35 an ounce at 10:35 a.m. Singapore time, after earlier rising to $1,106.78, the highest price since Feb. 4. April delivery gold increased as much as 1.6 percent to $1,107.30 in electronic trading on the New York Mercantile Exchange’s Comex unit. European finance ministers said yesterday they are prepared to impose additional deficit-reduction measures on Greece if needed. Luxembourg’s Jean-Claude Juncker said yesterday Greece will be excluded from a vote on additional deficit measures. Gold may rise about 15 percent annually in the next three to four years on demand for a hedge against inflation and a weaker dollar, Religare Asset Management Co., an Indian fund seeking to start a gold fund, said yesterday. Investors should place about 5 percent to 10 percent of their funds in gold, Saurabh Nanavati, chief executive officer of the mutual fund, said in an interview in Mumbai. Silver for immediate delivery rose as much as 1.5 percent to $15.78 an ounce before trading at $15.71. Platinum gained 0.7 percent to $1,526.25 an ounce and palladium gained 1 percent to $425 an ounce. To contact the reporter on this story: Luzi Ann Javier in Singapore at ljavier@bloomberg.net

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