Oct. 25 (Bloomberg) -- Gold was little changed in Asia after a two-day rally as the U.S. dollar's gain against the euro reduced the precious metal's appeal as an alternative asset. Silver was also little changed.

Gold had a correlation of 0.8 against the euro's exchange rate versus the dollar in the past month. A figure of 1 would indicate the two moved in lockstep. The euro was at $1.4266 as of 10:58 a.m. Singapore time today, compared with a record high of $1.4348 Oct. 22.

``The gold price has been volatile in the past week, being pushed around by movements in the U.S. dollar, oil prices and shifting attitudes towards risk,'' said David Moore, strategist at Commonwealth Bank of Australia in a report yesterday.

Gold for immediate delivery was little changed at $763.95 an ounce at 10:59 a.m. in Singapore. It gained by $4.15 to $763.95 yesterday. The metal has gained 20 percent this year and is heading for a seventh consecutive annual gain.

Silver for immediate delivery was little changed at $13.60 an ounce.

The December-delivery gold contract on the Comex division of the New York Mercantile Exchange was little changed at $767.30 an ounce at 11 a.m. Singapore time in electronic trading.

Gold prices were likely ``to recede from current highs but to remain at elevated levels,'' Moore, at Commonwealth Bank of Australia, said. ``One limiting factor may be that investors now appear to be long gold,'' he said.

Silver, Palladium

Jim Rogers, who correctly predicted the commodities rally in 1999, also said gold is likely to drop and may be outperformed by silver and palladium.

``Right now there's a gigantic speculative long position in gold,'' Rogers, chairman of Beeland Interests Inc., said yesterday in an interview from Milan. ``I'm waiting. When everybody is on one side of the boat you should move to the other side.''

Speculative long positions in New York gold futures, or bets prices will rise, outnumbered short positions by 201,859 contracts in the week ended Oct. 16, the highest since at least January 1994, U.S. Commodity Futures Trading Commission data showed on Oct. 19.

In Japan, gold for delivery in August was up 0.6 percent at 2,826 yen a gram ($770 an ounce) on the Tokyo Commodity Exchange at the 11 a.m. local time break.

To contact the reporter for this story: Feiwen Rong in Singapore at frong2@bloomberg.net

Last Updated: October 24, 2007 23:17 EDT