Gold advanced on speculation of increased demand for the precious metal as an investment and for use in jewelry. Investment demand has been “a bullish factor for the price over the past months,” BNP Paribas SA said in a report today. “While demand for jewelry declined significantly on the back of record high prices in the first half of 2008, it has since rebounded and has been strong.” Gold holdings in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, were unchanged at 1,105.62 metric tons on May 18, according to the company’s Web site. Holdings have risen about 42 percent since reaching 780.2 tons on Dec. 29. Immediate-delivery gold gained as much as $3.95, or 0.4 percent, to $922.20 an ounce, and traded at $922 at 10:48 a.m. in Singapore. The metal reached an all-time high of $1,032.70 an ounce on March 17, 2008, curbing jewelry sales. Gold for June delivery in New York was little changed at $921 an ounce at 10:57 a.m., Singapore time. Sixteen of 29 traders, investors and analysts surveyed by Bloomberg News, or 55 percent, said gold may climb this week. Nine people forecast lower prices and four were neutral. Among other precious metals for immediate delivery, silver rose 0.7 percent to $13.85 an ounce and platinum fell 0.2 percent to $1,133.25 an ounce. Palladium was little changed, 0.1 percent lower at $228.75.

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