Gold Futures Rise as Dollar Drops Against Euro; Silver Gains

By Pham-Duy Nguyen

Nov. 3 (Bloomberg) -- Gold futures rose as the dollar declined against the euro, boosting the appeal of the precious metal as an alternative investment. Silver also gained.

The euro climbed as much as 1.4 percent before paring gains. Gold plunged 18 percent in October, the most in 28 years, as the dollar climbed 11 percent against the euro. Gold reached a record in March as the euro headed for an all-time high in July.

``The dollar looks like it may be running out of gas, so we're seeing gold firm up a little bit,'' said Matt Zeman, a metals trader at LaSalle Futures Group in Chicago.

Gold futures for December delivery rose $8, or 1.1 percent, to $726.20 an ounce at 9:24 a.m. on the Comex division of the New York Mercantile Exchange.

Silver futures for December delivery rose 2 cents, or 0.2 percent, to $9.75 an ounce. Before today, the metal was down 35 percent this year, while gold had fallen 14 percent.