Gold advances as weaker dollar spurs investor demand

London, Jun 3. Gold today gained as a weaker dollar and a decline in equities increased demand for an alternative investment. Silver also climbed. Gold rose 0.7 per cent to USD 1,397.09 an ounce and silver by 0.9 per cent to USD 22.46 an ounce. The US Dollar Index, a measure against six major currencies, fell as much as 0.5 per cent today after declining the past two weeks. Global equities declined to a one-month low. Gold exchange-traded product holdings are at their lowest in two years amid concern the U.S. Federal Reserve will cut back its debt-buying program. Prices added 0.1 per cent last week, cutting May's loss to 6 per cent. Gold slid 17 per cent this year as equities rose, capping a 12-year bull run in 2012.