By Feiwen Rong Nov. 20 (Bloomberg) -- Gold rose in Asia as a decline in the dollar and tumbling world equity prices increased the appeal of the metal as an alternative investment. Bullion gained after the dollar fell for the first day in three against the euro and U.S. stocks fell to a five-year low on concern the U.S. recession is deepening. Physical buying by investors may also be holding gold up against the general decline in commodity prices, the World Gold Council said yesterday. ``We've seen a pick up in countries like India, China, Indonesia,'' Rozanna Wozniak, investment research manager at the council, said in an interview with Bloomberg Television today. ``I think a big factor underlying that has been that store of value, the safe haven motive.'' Bullion for immediate delivery gained $4.75, or 0.7 percent, to $739.30 an ounce at 11:15 a.m. in Singapore. Silver for immediate delivery was up 0.3 percent at $9.29 an ounce. Gold has fallen 28 percent from its March record of $1,032.70 an ounce as gains by the dollar and slowing world growth reduced demand for commodities. Oil futures fell 50 percent the same time, while copper futures are down 54 percent over the same period. Demand for the precious metal increased 18 percent in the third quarter as lower prices encouraged purchases by jewelers and as investors sought a haven from the credit crisis, the gold council said. So-called identifiable investment, which includes purchases through exchange-traded funds and of bars and coins, climbed 56 percent to 382.1 tons during the quarter. Jewelry demand gained 7.6 percent and sales to India, the world's largest gold consumer and jewelry buyer, advanced 29 percent. December-delivery gold rose 0.4 percent to $739.10 an ounce in after-hours electronic trading on the Comex division of the New York Mercantile Exchange. The contract gained 0.5 percent yesterday. Gold for October delivery in Tokyo fell 1.8 percent to 2,262 yen a gram ($735 an ounce) at the 11 a.m. local time. To contact the reporter on this story: Feiwen Rong in Singapore at frong2@bloomberg.net

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