Gold declined for a second day in New York as a stronger dollar curbed demand for the metal as an alternative asset.

The euro fell versus the dollar for a second day after Italy’s borrowing costs surged to the highest level since 1997 at a note auction and Mario Monti, the nation’s premier-in- waiting, faced resistance to forming a Cabinet.

Gold for December delivery fell to $1,760.90 an ounce on the Comex in New York. Immediate-delivery gold was 0.6 percent lower at $1,769.88 in London.

Bullion is in the 11th year of a bull market and futures reached a record $1,923.70 an ounce on Sept. 6 as investors sought to diversify away from equities and some currencies. Holdings in gold-backed exchange-traded products reached a record 2,330 metric tons on Aug. 18 and were at 2,312.3 tons yesterday, little changed from Nov. 11.