Gold Declines For Third Day Over Gaining Buck

Gold fell for a third day in Asia as the dollar traded near the highest in one week against the euro and crude oil declined, eroding the appeal of the precious metal as a hedge against inflation.

The euro traded at $1.5660 against the dollar at 8:54 a.m. before a report today that economists forecast will show growth in German industrial production slowed in May. Crude oil fell $1.23 a barrel to $144.06 a barrel at the same time, down more than 1 percent from its record $145.85 on July 3.

Bullion for immediate delivery fell $2.75, or 0.3 percent, to $930.50 an ounce at 8:59 a.m. in Singapore. Silver was little changed at $18.06 an ounce.

Gold for August delivery fell 0.2 percent to $932.20 an ounce in after-hours electronic trading on Comex at 9 a.m. Singapore time.

Gold for June 2009 delivery fell 0.3 percent at 3,226 yen a gram ($939 an ounce) on the Tokyo Commodity Exchange at 10:04 a.m. local time.