Aug. 2 (Bloomberg) -- Gold futures fluctuated, after dropping the most in July in seven months, as a rebound in the euro eased demand for the precious metal as an alternative to the currency. The euro rose as much as 1.1 percent against the dollar, touching the highest level since May 5. Before today, gold futures increased 8 percent this year, reaching a record $1,266.50 an ounce on June 21. The metal also climbed to all- time highs in euros on June 7 amid Europe’s sovereign-debt crisis. “On the rallies, you’ve got some investors moving out of gold and back into euros,” said Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago. “It’s the continuation of the unwinding of the long-gold, short-euro trade.” Gold futures for December delivery rose 90 cents, or 0.1 percent, to $1,184.80 at 1:01 p.m. on the Comex in New York. Earlier, the price rose as much as 0.8 percent to a one-week high. Demand increased in India, the world’s biggest importer, after prices dropped 5 percent in June. “Metal continues to flow toward countries such as India and Turkey in anticipation of a rise in seasonal demand,” Walter de Wet, the head of commodities research at Standard Bank Plc in London, said in a report. Hedge funds and other large speculators increased their net-long position by 5.9 percent in Comex gold futures in the week ended July 27, according to U.S. Commodity Futures Trading Commission data. That marked the first increase in a month. Silver futures for September delivery rose 36.2 cents, or 2 percent, to $18.365 an ounce on the Comex. Platinum futures for October delivery gained $23.20, or 1.5 percent, to $1,600 an ounce on the New York Mercantile Exchange. Palladium futures for September delivery advanced $14.90, or 3 percent, to $514.90 an ounce.

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