By Glenys Sim Nov. 20 (Bloomberg) -- Gold fell for a second day in Asia, as a rebounding dollar damped demand for bullion as a store of value and some investors sold the precious metal to cover losses on declining equity markets. Bullion for immediate delivery fell as much as 0.4 percent today and is down more than $10 from its all-time high of $1,152.85 reached Nov. 18. The dollar is headed for its first weekly gain in three as falling equity prices steer investors toward cash and on speculation U.S.-based investors will bring home funds before the holiday season. “It’s still the dollar driving gold prices,” said Steven Zhu, head trader at Shanghai Tonglian Futures Co. “As well, there are probably some investors selling gold to meet margin calls in equities.” Gold fell $3.84, or 0.3 percent, to $1,140.76 an ounce at 10:50 a.m. in Singapore. It earlier fell to $1,139.95 and has gained almost 2 percent this week. December-delivery gold on the Comex division of the New York Mercantile Exchange last traded little changed at $1,141.50 an ounce, after touching a record $1,153.40 on Nov. 18. Gold for June delivery on the Shanghai Futures Exchange gained as much as 0.2 percent to match yesterday’s record high of 250.60 yuan a gram ($1,142 an ounce). The dollar rose against a basket of six major currencies including the euro and yen today as Asian stocks extended the biggest drop in global equities this month, boosting haven demand. The regional benchmark MSCI Asia Pacific Index fell for a fourth day, poised for its longest losing streak in more than four months. Investment Demand Still, spot gold is headed for its third weekly gain amid speculation the dollar may resume its decline, adding to the threat of inflation. Gold demand climbed 10 percent in the third quarter from the previous three months as investors sought a currency hedge, the World Gold Council said yesterday. “Demand data from the World Gold Council provided further confirmation that the current gold price is largely a function of investor interest,” David Moore, commodity strategist at Commonwealth Bank of Australia, said in an e-mail today. Among other precious metals for immediate delivery, silver slipped 0.7 percent to $18.405 an ounce, platinum fell 0.8 percent to $1,432.50 an ounce, and palladium dropped 0.9 percent to $365.25 an ounce. To contact the reporter on this story: Glenys Sim in Singapore at gsim4@bloomberg.net

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