Dec. 9 (Bloomberg) -- Gold futures were little changed after posting their biggest decline in seven months yesterday as the dollar extends its biggest advance in two months.

The dollar rose in Asia after German Chancellor Gerhard Schroeder said he has ``concerns'' about the euro's strength. A stronger U.S. currency reduces the appeal of gold as an alternative to U.S. stocks and bonds.

The precious metal plunged 3.3 percent yesterday as some large speculators sold the metal after the dollar rose the most in a month against the yen and rallied versus the euro. The dollar traded at $1.3276 against the euro at 2:22 p.m. in Singapore, from $1.3337 yesterday in New York, according to electronic currency-dealing system EBS.

``There's no question the U.S. dollar is driving prices,'' said Simon Roberts, a commodity strategist at National Australia Bank Ltd. in Melbourne.

Gold for February delivery traded at $441.50 an ounce, up $2.80, or 0.6 percent at 3 p.m. Singapore time in after-hours trading on the Comex division of the New York Mercantile Exchange. Earlier, it rose as much as $4 to $442.70 an ounce.

Yesterday, gold futures slumped $15, or 3.3 percent, to $438.70, the biggest percentage drop for a most-active contract since April 28.

The U.S. dollar climbed to 104.39 yen at 2:17 p.m. in Singapore from 103.97 yesterday.

Gold prices have risen 10 percent in the past three months as the dollar fell 9 percent against the euro.

Gold for immediate delivery rose $2.05, or 0.5 percent, to $439.50 an ounce at 2:18 p.m. Singapore time, compared with $437.45 at 1.30 p.m. yesterday in New York.

In India, the world's largest gold consumer, bullion for February delivery rose 12 rupees, or 0.2 percent, to 6,350 rupees per 10 grams, or 19,748 rupees ($446) an ounce, at 11:52 a.m. on the Multi Commodity Exchange of India Ltd. in Mumbai. Yesterday, it closed at 6,338 rupees per 10 grams.

On the Tokyo Commodity Exchange, the benchmark October 2005 contract fell 15 yen a gram to 1,477 yen a gram at 2:22 p.m. in Singapore.

In Shanghai, the benchmark 99.95 percent gold contract fell 1.95 yuan, or 1.6 percent, to 117.3 yuan a gram at 2:22 p.m. Singapore time, according to the Shanghai Gold Exchange Web site. The Shanghai prices are delayed by one hour.

To contact the reporter on this story: Chia-Peck Wong in Singapore at cpwong@bloomberg.net

Last Updated: December 9, 2004 02:10 EST