Gold futures advanced in New York on speculation that the dollar’s retreat may boost demand for the precious metal as an alternative investment. Silver also rose. The dollar fell for a fourth consecutive day against the euro on speculation that a U.S. report today will show home prices fell, backing the case for the Federal Reserve to keep interest rates near zero. Precious metals typically move inversely to the U.S. currency. “Bullion was supported by the dollar’s decline,” said Kazuhiko Saito, an analyst at Tokyo-based broker Fujitomi Co. Gold futures for February delivery gained $15.50, or 1.1 percent, to $1,398.40 an ounce by 11:31 a.m. London time on the Comex in New York. Futures reached a record $1,432.50 an ounce on Dec. 7 and has risen 28 percent this year as Europe’s debt crisis and low U.S. interest rates spurred investment in precious metals. The metal is heading for a 10th consecutive annual gain, the longest winning streak in at least nine decades. Silver for March delivery 1 percent to $29.56 an ounce. Prices have climbed 75 percent this year. The metal for immediate delivery may jump to as high as $40 next year, leading gains in the 15 commodities covered in a Bloomberg survey of more than 100 analysts, traders and investors. Palladium for March delivery gained 1.3 percent to $777.05 an ounce and platinum for April delivery rose 0.9 percent to $1,757 an ounce. Both metals are used to make jewelry and pollution-control devices for cars. To contact the reporters on this story: Jae Hur in Tokyo at jhur1@bloomberg.net; Sungwoo Park in Seoul at spark47@bloomberg.net. To contact the editor responsible for this story: Richard Dobson at Rdobson4@bloomberg.net

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