By Feiwen Rong Nov. 5 (Bloomberg) -- Gold declined in Asia after its biggest rally in seven weeks as the dollar's gains against the euro and crude oil's retreat reduced the appeal of bullion as an alternative asset. The dollar rose to $1.2929 against the euro at 9:38 a.m. in Singapore after yesterday falling by the most since the 15-nation currency's 1999 debut as a thaw in money markets reduced demand for the safety of U.S. assets. Crude oil fell by 1.1 percent after rising more than $6 a barrel yesterday. ``Data readings should support the dollar against the euro, because on a relative basis, the economic outlook appears dire to Europe too,'' Walter de Wet, commodities researcher at Standard Bank Group Ltd. in Johannesburg, said in a report yesterday. Bullion for immediate delivery fell as much as 0.9 percent, or $6.53, to $756.72 an ounce today, before trading at $757.95 at 9:43 a.m. in Singapore. Silver for immediate delivery was down 0.3 percent at $10.185 an ounce. Speculation that Democratic candidate, Senator Barack Obama, who leads U.S. election national polls, will win against Republican John McCain helped send the dollar lower and lifted commodity and equity markets yesterday. Obama has called for a second economic stimulus package valued at $175 billion to help revive U.S. growth. ``With Obama, there's this idea that there will be more domestic spending, which may push down the value of the dollar and be good for commodity prices,'' said Michael Gross, an analyst at OptionSellers.com in Tampa, Florida. December-delivery gold was little changed at $757.40 an ounce in after-hours electronic trading on the Comex division of the New York Mercantile Exchange. Gold for October delivery in Tokyo rallied 4.7 percent at 2,422 yen a gram ($757 an ounce) at 10:24 a.m. local time. To contact the reporter on this story: Feiwen Rong in Singapore at frong2@bloomberg.net

Source