AUSTRALIA - * Central banks across the globe cut interest rates * Gold extends gains to nearly 4 percent * Investor rush to safer assets boosts gold's appeal (Releads, adds comments, updates prices) By Humeyra Pamuk LONDON, Oct 8 (Reuters) - Gold jumped nearly 4 percent on Wednesday, as investors sought safer assets despite a coordinated rate cut by the world's biggest central banks to restore battered financial markets. Central banks around the world cut interest rates in unison in a joint response to the worst financial crisis that the world is facing in nearly 80 years. [ID:nHKG77476 Bullion dropped below $900 an ounce immediately after the rate cut announcements, but went back up again as investors interpreted the rate cut move as a short-term remedy. Spot gold rallied to $920 an ounce, its highest since September 29 and was at $902.40 an ounce by 1331 GMT, up $21.8 from 886.60 an ounce late in New York on Tuesday. "Gold will still continue to gain safe-haven interest," said Simon Weeks, director of precious metals at Bank of Nova Scotia (nyse: BNS - news - people ). "I do not think the cuts will solve the situation. It will help smooth the situation, but I don't think there are any miracle cures at the moment," he said. The metal touched multi-year highs in several other currencies. In South African rand, it touched its highest recorded on the Reuters data, which goes back to 1990 while in Australian dollars, it was at the highest since 1985. Spot gold has risen 25 percent since mid-September as a deepening financial crisis, spreading to banks in Europe from the United States, prompted investors to sell investments in equities markets and seek refuge in safer assets. But it is still well below its lifetime high of $1,030.80 an ounce struck in March of this year. Physical demand for gold also has shot up, analysts say, as the banks being taken over by governments or sold to their rivals prompted consumers to invest in gold coins. The U.S. Mint said on Tuesday that because of the extreme fluctuating market conditions for 2008, as well as current market conditions, gold and silver demand is "unprecedented". "There is a lot of tightness in the market," said Jeremy East, global head of metals trading at Standard Chartered (other-otc: SCBEF.PK - news - people ) . "It may well continue -- there is a big demand for physical gold and for ETFs." Holdings in the world's largest gold-backed ETF, the SPDR Gold Trust, rose to 745.22 tonnes as of Oct. 8 from 744.54 tonne as of Oct. 7. Oil prices fell nearly $2 a barrel as the continuation of the global financial crisis heightened the anticipated decline in crude oil demand while the dollar fell against major currencies. Platinum was trading at $996.50 an ounce, down from $1,004.00 an ounce in New York on Tuesday and after falling as low as $940 an ounce. The metal has been hit by heavy selling on fears of falling demand for autocatalysts. It tumbled to $920 an ounce on Monday, its lowest level since November 2005, on the back of poor car sales, especially in the United States. Prices are well below a lifetime high of $2,290 an ounce struck in March. Spot silver was at $11.70/11.77 an ounce after jumping nearly 5 percent versus $11.51, while spot palladium was at $194/204 versus $194.00 late in New York on Tuesday.

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