Spot gold and silver prices rose for the second time in three days as equities rallied and the dollar dropped, increasing the appeal of the precious metals as alternative investments.

Gold for immediate delivery rose $3.08, or 0.2 percent, to $1,611.88 an ounce at 10:33 a.m. New York time. Earlier, the price dropped as much as 1.6 percent.

Before today, the metal slumped 16 percent from a record $1,921.15 on Sept. 6 as sovereign-debt woes in Europe drove equities and commodities lower.

Gold futures for December delivery fell $2, or 0.1 percent, to $1,616.10 on the Comex in New York, swinging between losses and gains.