By Kim Kyoungwha Dec. 8 (Bloomberg) -- Gold rose for the first time in four days as a 5.6 percent slump from last week’s record renewed buying interest in the metal. Bullion, which touched a record $1,226.56 an ounce on Dec. 3, plunged the past three sessions as the dollar regained strength. The U.S. currency may rise today against the euro on signs the global economic recovery is losing momentum, sapping demand for higher-yielding assets. “We’ve seen some buying coming in this morning but we have to keep a close eye on the market,” said Chad Walls, head of precious metals trading with Fortis Bank in Hong Kong. “If the dollar gains momentum again, then we’ll see more selling.” Gold for immediate delivery strengthened as much as 0.5 percent to $1,168.55 an ounce and traded at $1,167.80 at 9:30 a.m. in Singapore. February-delivery gold on the New York Mercantile Exchange’s Comex unit rose 0.3 percent to $1,167.90 an ounce. Gold will trade between $1,145 and $1,175 an ounce for the day, Walls forecast. Gold is up 31 percent this year as the dollar lost 6.9 percent against its six major counterparts. “Generally, the dips in gold are a good opportunity,” Walls said. “A lot of people are looking forward for a pull- back, which is healthy for the market. I expect to see a rally into the year end again to test up to the $1,200 area.” The dollar traded at $1.4852 per euro from $1.4827 in New York yesterday, when it reached $1.4756, the highest level since Nov. 4. Asian stocks may decline today, tracking an overnight decline in their counterpart U.S. markets, before reports economists expect will show gains in U.K. manufacturing slowed last month and confidence among Japanese merchants declined. The dollar climbed yesterday after Federal Reserve Chairman Ben S. Bernanke said the U.S. economy faces “formidable headwinds.” Should investors “start to take profits, then there’s a lot of downside risk,” said Jang Jae Young, head of global markets at Societe Generale SA in Seoul. “The market will be quite volatile in the coming months. If you just take gold from now, it looks too dangerous. There should be some correction.” Silver for immediate delivery climbed 0.9 percent to $18.35 an ounce, palladium advanced 0.7 percent to $375.75 an ounce, and platinum gained 0.9 percent at $1,454 an ounce. To contact the reporters on this story: Kyoungwha Kim in Singapore at kkim19@bloomberg.net;

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