Gold declined in Asia as some investors sold the metal for cash after it rallied by the most in more than two weeks on demand for a haven investment. Bullion rose as much as 2.7 percent yesterday, the most since Jan. 23, as equities declined on skepticism that a proposed U.S. bank rescue plan will revive credit markets and the world’s biggest economy. “We’re just seeing a bit of profit taking today,” said Steven Zhu, trading manager at Shanghai Tonglian Futures Co. “Gold will continue to benefit from investors seeking a haven from the financial turmoil in the world right now.” Bullion for immediate delivery fell 0.4 percent to $911.37 an ounce at 2:03 p.m. in Singapore. Silver was unchanged at $13.15 an ounce. U.S. Treasury Secretary Timothy Geithner yesterday pledged government financing for programs aimed at spurring lending and addressing banks’ toxic assets, an effort that may grow to as much as $2 trillion. The Standard & Poor’s 500 Index dropped 4.9 percent, the most since Jan. 20, to 827.16. Holdings in the SPDR Gold Trust, the biggest exchange-traded fund backed by bullion, expanded to a record 894.72 metric tons yesterday. ETF Securities Ltd., which manages assets totaling $8.7 billion, said gold exchange-traded commodities attracted the most money last week. Sales of 1-ounce American Eagle gold coins more than quadrupled in January, the U.S. Mint said. The Mint sold 92,000 of the coins last month, compared with 22,500 in January 2008. Coin Demand “Robust demand for gold Exchange Traded Funds, coins, small bars, and other bullion investment products, is proof of strong investor demand,” HSBC Securities analyst James Steel said. “On the other hand, jewelry demand is weaker in both emerging and advanced economies and deflationary pressures are mounting worldwide.” Gold imports by India, the world’s biggest buyer of bullion, fell last month as record prices prompted consumers to sell old jewelry, curbing demand for metal bought overseas. Purchases fell to 1.8 tons to 2 tons from 24 tons in the year-ago period, said Suresh Hundia, president of the Bombay Bullion Association Ltd. Investment demand for precious metals pushed platinum back above $1,000 an ounce in the past three days. The metal used in vehicle catalytic converters was little changed at $1,037.50 an ounce at 1:33 p.m., after gaining 4.5 percent yesterday. Palladium was also little changed at $212.75 an ounce. Technical charts some traders use to forecast price movements suggested near-term strength in platinum, which has broken out of a consolidation phase, signaling a trend reversal, according to Standard Bank Group Ltd. technical analyst Darran Grabham. “A daily close above $991 provides additional secondary evidence that a breakout has occurred,” said Grabham. “Platinum strength beyond $1,045 opens up the topside, with the next resistance point at $1,120.”

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