Gold advanced in Asia as dollar weakness increased the metal’s appeal as an alternative to U.S. currency-denominated assets. Silver climbed to the highest in almost 10 months. Bullion extended yesterday’s gains after the dollar dropped to the lowest since Dec. 18 against a basket of six major currencies. The dollar declined for a second day against the yen on concern nations are considering alternatives to the world’s main reserve currency, spurring investors to sell the greenback. “With the inverse relationship between gold and the buck back in vogue and the year’s steepest monthly dollar decline in May, gold prices are poised to attack the psychological $1,000 level this week,” said Ralph Preston, a Heritage West commodity analyst in San Diego. Gold for immediate delivery gained 0.3 percent to $983.17 an ounce at 8:56 a.m. in Singapore. Silver jumped 1.3 percent to $16.17 an ounce, extending yesterday’s 2.4 percent rise to reach the highest since Aug. 8. Silver has outpaced gold this year. An ounce of gold now buys 60.8 ounces of silver, the lowest since Sept. 1, down from a peak of 84.4 ounces on Oct. 10. Gold holdings in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, were unchanged at a record 1,134.03 metric tons yesterday. The fund’s holdings have increased 45 percent this year. Gold for August delivery, the most-active contract on the Comex division of the New York Mercantile Exchange, was little changed at $985.20. The contract reached $990.20 on June 1, the highest since Feb. 24. Among other precious metals for immediate delivery, platinum declined 0.4 percent to $1,243.75 an ounce and palladium lost 0.4 percent to $249.75 an ounce as of 9:10 a.m. in Singapore.

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