Alvarez the hero for Mexico in Gold Cup triumph
Chris Richards put the US ahead with a fourth-minute winner, before Raul Jimenez got Mexico back on level terms in the 27th with his third goal of this Gold Cup.
The winner came in the 77th minute after Mexico were awarded a free kick when Diego Luna fouled Alexis Vega.
Johan Vasquez flicked the restart across the goal mouth and Alvarez swept the ball home from close range.
While the play was initially called offside, the goal was awarded by the VAR, and Mexico defended its title from 2023 while improving to 6-2 in Gold Cup finals against the US.
American Patrick Agyemang had a chance to equalise two minutes into stoppage time but he didn't make good contact on his short-range shot that was blocked by goalkeeper Luis Malagon.
"We're disappointed obviously to not come away with a win," US captain Tim Ream said.
A sellout crowd of 70,925 at NRG Stadium was about 70 per cent pro-Mexico and booed US players when they walked out for pregame warmups.
This was the last competitive match for the US and Mexico before co-hosting next year's World Cup with Canada.
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