Nov. 2 (Bloomberg) -- Platinum and palladium gained as the dollar fell against the euro, boosting demand for the precious metals as alternative assets.

The dollar slid as much as 0.8 percent against the European currency, and was down 5.1 percent for 2009. Equities declined in New York on evidence that the global economic recovery is gaining momentum, spurring demand for higher-yielding assets.

“The dollar has lost some ground, enabling the precious metals as a group to regain ground,” Miguel Perez-Santalla, a sales vice president at Heraeus Precious Metals Management in New York, said in a note.

Platinum futures for January delivery climbed $11.80, or 0.9 percent, to $1,338.10 an ounce on the New York Mercantile Exchange. The most-active contract fell 3.2 percent last week.

Palladium futures for December delivery rose $3.10, or 1 percent, to $326.35 an ounce. The most-active contract gained 8 percent in October, rising for a sixth straight month.

The metals extended gains after a report showed manufacturing in the U.S. expanded in October at the fastest pace in more than three years.

Platinum has climbed 42 percent this year, while palladium is up 73 percent.

To contact the reporter on this story: Halia Pavliva in New York at hpavliva@bloomberg.net.

Last Updated: November 2, 2009 14:06 EST