By Pham-Duy Nguyen Oct. 31 (Bloomberg) -- Gold futures fell, heading for the biggest monthly drop in 25 years, as the dollar climbed, reducing the appeal of the precious metal as an alternative investment. Silver also declined. The dollar rebounded against a weighted basket of six major currencies after dropping 2.8 percent in the previous two days. Equities worldwide were poised for the biggest monthly decline on record. Before today, gold dropped 12 percent this year, while the dollar index gained 10 percent. ``Global liquidation means more money from foreign assets are going into the dollar,'' said Adrian Day, the president of Adrian Day's Asset Management in Annapolis, Maryland. ``The dollar is seen as a safe haven. There's also liquidation of gold itself, which is easily sold.'' Gold futures for December delivery fell $4.70, or 0.6 percent, to $733.80 an ounce at 8:34 a.m. on the Comex division of the New York Mercantile Exchange. This month, the price has dropped 17 percent, the most since February 1983. Silver futures for December delivery dropped 18.5 cents, or 1.9 percent, to $9.60 an ounce. The metal is down 22 percent this month. To contact the reporter on this story: Pham-Duy Nguyen in Seattle at pnguyen@bloomberg.net.

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