-- Gold fell for an eighth day in London, extending its longest losing streak since June 2006, as rising equities and speculation governments will broaden efforts to revive the economy reduced demand for bullion as a haven. Stocks in Europe and Asia advanced, pushing the MSCI World Index higher for the first time in six days. Chinese Premier Wen Jiabao will announce a new stimulus package tomorrow, according to former Statistics Bureau head Li Deshui. Gold has dropped 8 percent since Feb. 20, when it reached an 11-month high. “There’s slightly more positive data out of China” and the gain in equities “improved sentiment and helps add downward pressure on gold,” said Standard Chartered Plc analyst Dan Smith. “People are still taking profits after the recent rally. Gold may head toward $900 an ounce in the short term.” Bullion for immediate delivery fell as much as $9.63, or 1.1 percent, to $906.65 an ounce and traded at $913.29 at 12:49 p.m. local time. April futures added 90 cents to $914.50 an ounce in electronic trading on the New York Mercantile Exchange’s Comex division. The metal declined to $911 in the morning “fixing” in London, used by some mining companies to sell production, from $913.75 at yesterday’s afternoon fixing. Spot prices, which reached a record $1,032.70 a year ago, are up 3.6 percent this year. A Chinese manufacturing index climbed for a third month, adding to evidence that a 4 trillion-yuan ($585 billion) stimulus package is pushing the world’s third-biggest economy closer to a recovery. Governments and central banks are spending trillions of dollars to combat the worst financial crisis since the Great Depression. Gold Bears “The gold bears are calling for lower prices due to a decline in demand from India and an increase in gold scrap,” Mark O’Byrne, managing director of brokerage Gold and Silver Investments Ltd. in Dublin, wrote today in a note. Gold imports by India, the world’s biggest consumer, fell for a fourth month to almost nil in February, according to provisional estimates from the Bombay Bullion Association Ltd. Still, lower prices may encourage more buying, said Wolfgang Wrzesniok-Rossbach, head of marketing and sales at Hanau, Germany-based Heraeus Metallhandels GmbH. Gold “should stabilize despite the profit taking we have seen,” he said. “Jewelry demand may pick up a bit. Any price near $900 an ounce would look like a bargain.” Assets in the SPDR Gold Trust, the biggest exchange-traded fund backed by bullion, held at a record 1,029.29 metric tons for a fourth day yesterday. Holdings in the fund have increased 32 percent since the start of the year. Bullion held in ETF Securities Ltd.’s exchange-traded commodities rose to a record 7.08 million ounces last week. Wealth Preservation “ETF demand has certainly subsided from the exponential growth seen in recent weeks,” O’Byrne said. Still, “wealth preservation and risk aversion is likely to remain evident in the coming months.” Among other metals for immediate delivery in London, silver added 0.6 percent to $12.895 an ounce. Platinum rose 0.9 percent to $1,043 an ounce and palladium was 50 cents higher at $194.50 an ounce.

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