(Bloomberg) -- Gold fell for the first time in three days in Asia on speculation the dollar may gain, reducing the appeal of the precious metal as an alternative investment. Silver also dropped.
The dollar was little changed at $1.4394 per euro at 3:26 p.m. Shanghai time. A U.S. report this week may show durable- goods orders rebounded, suggesting the economy is weathering the worst housing slump in 16 years.
``Gold's moves will be limited, as trading is sluggish during the holiday, even as the dollar may rise,'' Bill Cai, a gold trader with Bank of China Ltd. in Shanghai, said by phone.
The metal fell $4.80, or 0.6 percent, to $807 an ounce at 2:36 p.m. Shanghai time. Silver dropped 0.5 percent to $14.47 an ounce. Trading on the Comex division of the New York Mercantile Exchange will be closed today for the Christmas holiday.
The dollar has gained against 12 of the 16 major currencies in the past month on speculation that signs of economic resilience and accelerating inflation will discourage the Federal Reserve from cutting borrowing costs next month.
In Japan, gold for December delivery, the most-widely held contract, rose 1.7 percent to close at 2,986 yen a gram ($813 an ounce) on the Tokyo Commodity Exchange.
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