Gold, Silver are Little Changed as Euro Steadies Against Dollar

June 4 (Bloomberg) -- Gold and silver, little changed in New York, may gain on speculation a decline in the dollar's value against the euro will boost the appeal of the precious metals as an alternative investment.
Gold generally moves in tandem with the euro, which today rose from a seven-week low against the dollar. Before today, gold had gained 6.1 percent this year as the euro climbed 1.9 percent against the dollar.
``The dollar weakness should give gold a boost,'' said Marty McNeill, a trader at R.F. Lafferty Inc. in New York. ``People are looking for gold to go higher.''
Gold futures for August fell 60 cents to $676.30 on the Comex division of the New York Mercantile Exchange. The price earlier traded as high as $679.50.
Silver for July rose 0.5 cent to $13.745 an ounce. Before today, the metal had gained 6.2 percent this year.
The euro reached a record $1.3681 against the dollar on April 27. The 13-nation currency traded as high as $1.3499 today before paring gains.
Some investors also bought metals as a hedge against a decline in equities, traders said. China's benchmark plunged 7.7 percent today, the biggest decline on record. The index peaked on May 29. The Standard & Poor 500 Index and Dow Jones Industrial Average have also reached all-time highs this year.
``The market is focusing on inflationary concerns,'' said Nick Ruggiero, a trader at Eagle Futures Inc. in New York. ``We have a lot more investors looking to trade gold as a hedge against their stock portfolio.''
Some investors sold gold on speculation last week's rally was overdone. The price rose 1.5 percent on June 1, the most in three months. Gold gained 2.3 percent last week after dropping 4.1 percent in the previous three weeks.