SINGAPORE (Commodity Online) : Gold prices recovered in Asian trade Thursday as the dollar weakened while physical demand for the precious metal increased. Gold for immediate delivery was seen trading at $ 1387.44 an ounce at 1.00 p m Singapore time while February-delivery futures were at $1,388.10 an ounce on the Comex in New York. Dollar dropped 0.4 percent, the first decline in four sessions against a basket of six major currencies, increasing the allure of precious metals as alternative investments. Gold, which typically moves inversely to the U.S. currency, has gained 26 percent this year. Palladium and silver also gained. Silver for immediate delivery rose 0.9 percent to $28.6350 an ounce, rallying after a 6 percent loss in the previous two days. Palladium for immediate delivery climbed 1 percent to $733.50 an ounce, while spot platinum was little changed at $1,684.50 an ounce. On Wednesday, the most active gold contract for February delivery retreated $25.8 per ounce, or 1.8 percent, to close at $1,383.2 . Market traders mainly attributed gold's slump to stronger dollar, which eroded the appeal of dollar-priced gold for investors holding other currencies. Silver for March delivery slumped $1.525 , or 5.12 percent, to $28.252 per ounce. Meanwhile, January platinum fell $23.8 , or 1.4 percent, to $1,681.4 per ounce.

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