By Pham-Duy Nguyen Nov. 20 (Bloomberg) -- Gold rose for the second straight day on speculation the Federal Reserve will lower interest rates to stimulate the economy, boosting the appeal of the precious metal as an alternative to U.S. assets. The yield on the two-year note dropped below 1 percent for the first time ever on bets the central bank will cut the benchmark rate next month. Gold reached a record $1,033.90 an ounce on March 17, after the Fed slashed rates 2.25 percentage points in four months. ``Interest rates are headed lower and that means less competition for gold,'' said Marty McNeill, a trader at R.F. Lafferty Inc. in New York. ``Gold is catching a flight-to- quality bid.'' Gold futures for December delivery rose $4.20, or 0.6 percent, to $740.20 an ounce at 9:49 a.m. on the Comex division of the New York Mercantile Exchange. Silver futures for December delivery fell 22 cents, or 2.4 percent, to $9.09 an ounce on the Comex. Platinum futures for January delivery dropped $28.70, or 3.5 percent, to $795 an ounce on the Nymex. Palladium for December delivery fell $14.15, or 7.3 percent, to $179.70 an ounce. To contact the reporter on this story: Pham-Duy Nguyen in Seattle at pnguyen@bloomberg.net.

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