Gold futures fell from a two-week high as the dollar’s rally curbed demand for the metal as an alternative asset.

The euro slumped against the greenback after Greek Prime Minister Lucas Papademos warned that his country may face economic collapse as soon as March, and France’s debt costs climbed. Gold’s correlation with the 17-nation currency is the highest since March 2010, data compiled by Bloomberg show.

Gold futures for February delivery declined 0.3 percent to $1,607.70 an ounce at 10:19 a.m. on the Comex in New York. Earlier, the price reached $1,626.80, the highest for a most- active contract since Dec. 21, partly because of physical demand in Asia.

The metal climbed 4.7 percent in the previous three sessions. In the fourth quarter, futures dropped 3.4 percent, snapping a rally since the end of 2008.