(Corrects first paragraph to say silver rose.)

March 27 (Bloomberg) -- Gold fell in New York after the dollar rebounded against the euro. Silver rose.

The dollar rose as much as 0.8 percent against the euro after falling within 1 cent of the all-time low yesterday. Gold reached a record $1,033.90 an ounce on March 17 when the euro rose to the highest ever.

``There's a little strength to the dollar, so gold is vulnerable to the downside,'' said Frank McGhee, the head metals trader at Integrated Brokerage Services LLC in Chicago.

Gold futures for June delivery fell 20 cents to $954 an ounce on the Comex division of the New York Mercantile Exchange. The price gained 3.9 percent in the previous two sessions after falling 8 percent last week.

Silver futures for May delivery gained 16.7 cents, or 0.9 percent, to $18.55 an ounce. Silver has climbed 24 percent this year while gold advanced 14 percent.

The dollar fell 2.7 percent against the euro in the two sessions through yesterday, the biggest two-day drop against the euro since 2001. The U.S. currency strengthened today after a report showed fourth-quarter consumer spending rose more than forecast. The euro touched $1.5727 today, and traded at $1.5796 at 2:20 p.m. in New York. The European currency reached a record $1.5903 last week.

``Right now, only the dollar, which could see a decent counter-trend rally, can keep gold down for a few weeks,'' said Adrian Day, president of Adrian Day's Asset Management in Annapolis, Maryland.

Declines in price are opportunities to buy, some analysts said. Gold has more than tripled since 2001 while the dollar has lost almost half its value against the euro.

Inflation Concern

``We may see $1,000 again before we see $900,'' said Matt Zeman, a metals trader at LaSalle Futures Group Inc. in Chicago. ``There's potentially more downside to go for the dollar. People are still looking to get into gold to hedge against inflation and the falling dollar.''

Investment demand in the StreetTracks Gold Trust, the biggest exchange-traded fund backed by bullion, has remained unchanged at 634 metric tons this week after reaching a record 663.8 metric tons on March 17.

To contact the reporter on this story: Pham-Duy Nguyen in Seattle at pnguyen@bloomberg.net.

Last Updated: March 27, 2008 14:47 EDT