NEW YORK: Gold fell as equities climbed, eroding the appeal of the precious metal as an alternative asset. Silver topped $31 an ounce. The Standard & Poor's 500 Index headed for the biggest gain in a month after a report showed US manufacturing rose in December, a signal the economy is recovering. US Treasury yields gained. Gold futures rose 30 percent in 2010, climbing to a record $1,432.50 an ounce Dec. 7, amid Europe's debt woes and low US borrowing costs. Silver jumped 84 percent last year. “Certainly, gold and silver are not cheap at these prices,” said Leonard Kaplan, the president of Prospector Asset Management in Evanston, Illinois. “The stock market will rally, and bond yields will go up, which will make commodities less attractive.” Gold futures for February delivery fell $3.40, or 0.2 percent, to $1,418 on the Comex in New York. The metal climbed 8.5 percent last quarter. Silver futures for March delivery climbed 5.8 cents, or 0.2 percent, to $30.995. Earlier, the price reached $31.275, the highest since March 1981. Palladium futures for March delivery rose 85 cents, or 0.1 percent, to $804.15 an ounce on the New York Mercantile Exchange. The metal soared 96 percent in 2010. Platinum futures for April delivery advanced $7.30, or 0.4 percent, to $1,785.50 an ounce. The price gained 21 percent last year. Earlier in Europe, gold rose above $1,420 an ounce, within 1 percent of its record high, and silver and palladium hit multi-year peaks, driven by pent-up demand on the first trading day of 2011. While a firm dollar limited gains, expectations for more bad news on euro zone debt, concerns over potential inflation in developing economies and an increased focus on the US deficit are set to maintain surging demand for gold, analysts said. Pradeep Unni, a senior analyst at Richcomm Global Services in Dubai, said fresh highs in gold were likely this year, with an initial target seen at $1,455-$1,480, after trade in the metal was becalmed over the Christmas holidays. "The fundamentals are driving the price, and those fundamentals remain fear
