Gold rose for a second day, tracking gains in commodities, on speculation that the European crisis will be contained and as the dollar weakened, increasing demand for the precious metal as an alternative investment.

Euro-area finance chiefs discussed giving Greece more time to meet bailout targets. Holdings in bullion-backed exchange-traded products climbed to a record 2,587.92 metric tons yesterday.

In October, the business activity in the U.S. unexpectedly fell for the second month in a row, which again confirms the fact that the manufacturing sector has not played a central role in the reconstruction of the national economy. In September, the index of manufacturing activity rose from the Federal Reserve Bank of Chicago 49.7 to 49.9. Recall that a value below 50 indicates negative dynamics. According to the median forecast of analysts, the index would be 51.

Importers of gold in India remain cautious on the weakening rupee and rising prices abroad. Demand for gold increases during festival season, culminating in November will be the Hindu festival of lights Diwali, as well as wedding season.

Gold futures for December delivery gained to $1,726 an ounce on the Comex in New York, paring the loss for October to 3 percent, the first decline since May.