Gold fell for a second day in London on signs investment demand that helped send prices to an 11- month high last week is slowing. Palladium and platinum rose. Assets in the SPDR Gold Trust, the biggest exchange-traded fund holding gold, have been unchanged at a record 1,029 metric tons since Feb. 19. Gold has climbed 12 percent this year as investment in the ETF jumped 32 percent. Investors “may be waiting for better levels to get in,” said John Reade, an analyst in London at UBS AG. “I heard from a German counterparty of some light physical selling from investors who have held gold for decades rather than weeks.” Gold for immediate delivery fell $4.80, or 0.5 percent, to $986.95 an ounce by 10:01 a.m. in London. The price on Feb. 20 rose to $1,006.29, the highest since March 18. Investors who bought gold may not want to hold the metal for as long as buyers in the past, Reade said. “We haven’t tested the resoluteness of recent ETF purchases,” he said. Prices have climbed as investors sought a haven from declines in stock markets. LGT Bank in Liechtenstein (Singapore) Ltd., which is owned by Liechtenstein’s royal family and offers services to wealthy individuals, is favoring gold and shunning Treasuries on bets the risk of inflation will quicken. U.S. government and Federal Reserve efforts to end the recession in the world’s biggest economy will push up prices for goods and services, said Hans Goetti, who oversees $10 billion in Asia as LGT’s chief investment officer. “We are setting ourselves up for inflation maybe 12 to 18 months from now,” Goetti said. Silver fell 4.37 cents, or 0.3 percent, to $14.38 an ounce. Platinum for immediate delivery gained $3, or 0.3 percent, to $1,080 an ounce and palladium rose $9.25, or 4.7 percent, to $207.25 an ounce. Goldman Sachs JBWere Pty raised its platinum price forecast for this year by 24 percent to $1,050 an ounce from $847 an ounce, partly because supply may fall short of demand “in the medium term.”

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