By Pham-Duy Nguyen March 8 (Bloomberg) -- Gold, little changed in New York, may rise as a decline in the dollar boosts demand for the metal as an alternative asset. The dollar fell as much as 0.6 percent against the euro. Gold reached a record $1,227.50 an ounce in New York last year. Bullion climbed 24 percent in 2009 while the dollar fell 2.5 percent against the 16-nation European currency. “Precious metals are expected to trade in a higher direction this week,” said Tom Pawlicki, an MF Global Holdings Ltd. analyst in Chicago. “A weaker dollar may result and increase the market’s appetite for risk.” Gold futures for April delivery gained 70 cents to $1,135.90 an ounce at 9:08 a.m. on the New York Mercantile Exchange’s Comex division. The most-active contract rose 1.5 percent last week. Also in New York, silver futures for May delivery rose 10.8 cents, or 0.6 percent, to $17.49 an ounce. April platinum futures jumped $27.30, or 1.7 percent, to $1,606.40 an ounce. June palladium futures slipped 20 cents to $476.50 an ounce. To contact the reporter on this story: Pham-Duy Nguyen in Seattle at pnguyen@bloomberg.net.

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