Gold futures fell the most in two weeks as the dollar’s rally and muted U.S. inflation cut demand for the precious metal as a store of value.

Global assets in exchange-traded products backed by gold are close the lowest in five years, and money managers cut their bullish futures and options holdings in eight of the past nine weeks. The cost of living in the U.S. barely rose in September, the government said today, while the dollar rose for the second straight day against a basket of 10 currencies.

Gold slumped 8.4 percent in the third quarter as U.S. equities surged to a record, eroding demand for the commodity as a haven. On Oct. 6, the metal fell to the cheapest this year. The price climbed as much as 6.1 from the low after the Federal Reserve cited slowing foreign economies as a risk to the U.S. That prompted some investors to push back estimates for an increase in interest rates.

“Lack of inflation and strength in the dollar has put a damper on gold purchases in the near term,” Adam Klopfenstein, a senior market strategist at Archer Financial Services in Chicago, said in a telephone interview.

Gold futures for December delivery dropped 0.5 percent to settle at $1,245.50 an ounce at 1:35 p.m. on the Comex in New York, the biggest drop for a most-active contract since Oct. 8.

The metal rose 3.9 percent in the two weeks ended Oct. 17, posting the first consecutive gains since July. Prices climbed partly amid the slump in U.S. equities. Bets that global central banks will ramp up monetary stimulus helped shares recover. Yesterday, the Standard & Poor’s 500 Index of stocks jumped the most in a year.

“The rebound in the equity market is taking some investors away from gold,” Klopfenstein said.

Silver futures for December delivery dropped 1.8 percent to $17.231 an ounce, the biggest loss since Sept. 30.

On the New York Mercantile Exchange, platinum futures for January delivery fell 0.9 percent to $1,271.10 an ounce.

Palladium futures for December delivery rose 0.1 percent to $776.70 an ounce.