By Rachel Graham Oct. 28 (Bloomberg) -- Gold advanced in London trading as global stocks climbed, halting a selloff in commodities. Platinum rallied from a five-year low. More than $12 trillion has been erased from equity values this month, spurring a 15 percent decline in gold prices as investors sold assets to raise cash. Hong Kong's Hang Seng Index rallied 14 percent today, rebounding from its biggest decline in a decade, European stocks rose and U.S. index futures climbed. The S&P GSCI index of 24 raw materials, which slid to a 21-month low yesterday, advanced 1.8 percent. ``We are seeing a bit of a recovery in equities,'' Mario Innecco, a futures broker at MF Global Ltd. in London, wrote in an e-mail. ``As gold has been associated negatively with the deleveraging process we should expect gold to rally strongly.'' Gold for immediate delivery gained $12.12, or 1.7 percent, to $742.92 an ounce as of 11 a.m. in London. Futures for December added 10 cents to $743 an ounce. Gold in the SPDR Gold Trust, the largest exchange-traded fund backed by bullion, expanded 0.3 percent to 749.21 metric tons yesterday, according to figures on the company's Web site. The fund was at a record 770.64 tons Oct. 13, overtaking Japan as the world's seventh-largest gold holding. Palladium rose $3.75, or 2.2 percent, to $176.75 an ounce. The metal, used in car exhaust systems and electronics, has fallen about 70 percent since March 4 when it traded as high as $595 an ounce. Russian Stockpiles Russia last month exported the most palladium to Switzerland in almost two years, casting doubt on statements that state stocks are running low, UBS AG said. Russia exported 31 tons, or about 1 million ounces, of palladium to Switzerland in September, the largest shipment on record excluding year-end deliveries, UBS analyst John Reade wrote in an e-mailed note today, citing Swiss customs statistics. ``Recent shipments of palladium from Russia do much to undermine one bullish argument for palladium -- the belief that Russian stock sales have slowed and that the state stockpile is nearing depletion,'' Reade wrote. Among other metals for immediate delivery, silver fell as much as 60.5 cents, or 6.7 percent, to $8.4587 an ounce, the lowest compared with intraday prices since Dec. 22, 2005. Platinum rose for the first time in six days, climbing $31.50, or 4.1 percent, to $802.50 an ounce. To contact the reporter on this story: Rachel Graham in London at rgraham13@bloomberg.net

Source