By Stuart Wallace Oct. 8 (Bloomberg) -- Gold advanced for a third day in London as financial turmoil spurred investors to seek a haven. Platinum fell on concern that slower economic growth will sap demand for cars, which use the metal in autocatalysts. The Federal Reserve, European Central Bank and four other central banks lowered interest rates in an unprecedented coordinated effort to ease the economic effects of the worst financial crisis since the Great Depression. Gold for immediate delivery rose as much as $29.05, or 3.3 percent, to $916.15 an ounce, exceeding $900 for the first time this month. The metal traded up 1.7 percent at $901.80 as of 1:13 p.m. in London. ``Everyone in the market is questioning why gold isn't in the four-digit range, but I think $900 is about the limit,'' Bayram Dincer, a commodity research analyst at Dresdner Bank in Zurich, said by telephone. ``Profit taking may start at about that level.'' Investment in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, climbed 0.68 metric tons to 745.22 tons yesterday. The record was 755.3 tons on Sept. 30. Futures for December delivery climbed $23, or 2.6 percent, to $905 an ounce on the Comex division of the New York Mercantile Exchange. The cost of borrowing gold dropped. The 12-month lease rate fell to 2.42 percent, from 2.48 percent yesterday, which was the highest since May 2001. The rate is derived by subtracting the gold forward offered rate from the London Interbank Offered Rate. Higher rates are partly because of ``general dysfunction on money markets,'' UBS AG metals strategist John Reade said in a report yesterday. There has also been concern that some central banks are reluctant to lend gold ``because of a redoubled focus on counterparty credit risk,'' he said. Platinum Drops Platinum for immediate delivery dropped $10.75, or 1.1 percent, to $1,003.75 an ounce in London. It earlier declined as much as 6.4 percent. U.S. September car sales were the worst since 1991, with Ford Motor Co.'s sales falling 35 percent. Autocatalysts, used to reduce tailpipe emissions, account for 47 percent of platinum demand, according to Johnson Matthey Plc. The figures take into account recycling. Investec expects platinum to average $1,100 this quarter, rising to $1,179 in the first three months of next year, it said in a report yesterday. The metal will average $1,640 this year, falling to $1,384 next year, the bank said. ``In view of the deteriorating economic outlook, rising metal stocks and the financial sector malaise, we have significantly reduced our metal price forecasts over the next two years,'' Investec said. Among other precious metals for immediate delivery, silver gained 18.99 cents, or 1.6 percent, to $11.7649 an ounce. Palladium was unchanged at $199 an ounce. To contact the reporter on this story: Stuart Wallace in London at swallace6@bloomberg.net

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