By Sungwoo Park and Jae Hur April 7 (Bloomberg) -- Gold gained for a third day on speculation that the Federal Reserve will keep its benchmark interest rate at a record low to safeguard the economic recovery, spurring demand for bullion as an alternative investment. Gold for immediate delivery rose as much as 0.4 percent to $1,138.55 an ounce and was at $1,136.40 at 2:39 p.m. in Seoul. The June-delivery contract in New York rose as much as 0.3 percent to $1,139.40 an ounce and was last at $1,137.60. “Bullion was supported by speculation that the Fed will keep rates near zero for the time being, and higher oil prices,” said Hiroyuki Kikukawa, general manager of research at Tokyo-based IDO Securities Co. Most equities rose on speculation that the U.S. benchmark interest rate would be unchanged. Federal Reserve officials saw signs that a strengthening recovery could be hobbled by high unemployment and tight credit, and some warned against raising rates too soon, according to minutes of their March meeting released yesterday. Oil climbed to more than $87 a barrel for the first time since October 2008 yesterday on growth in U.S. jobs and service industries. The U.S. government yesterday increased its crude oil price forecast for 2010 on projections that the global economy will rebound through the end of the year. Platinum for immediate delivery advanced as much as 1.5 percent to $1,726.75 an ounce, the highest since Aug. 1, 2008, and last traded at $1,720.25. The metal, used mainly in catalytic converters, has climbed 17 percent this year, outperforming gold’s 3.7 percent gain, as industrial demand expanded and the start of exchange-traded platinum funds in the U.S. in January boosted purchases. Rescue Plan Investors’ concerns that a rescue plan for Greece may falter are also boosting the appeal of gold and other commodities as alternative investments, said Chris Yoo, head of global derivatives at Samsung Futures Inc. in Seoul. Greek bonds tumbled yesterday after Market News International said the country wanted to bypass International Monetary Fund involvement in any EU-sponsored rescue because terms for aid would be too stringent. Silver for immediate delivery increased 0.4 percent to $18.005 an ounce, while palladium gained 1.1 percent to $512 an ounce. --With assistance from Craig Torres and Mark Shenk in New York and Lukanyo Mnyanda in London. Editor: Matthew Oakley. To contact the reporters on this story: Sungwoo Park in Seoul at spark47@bloomberg.net; Jae Hur in Tokyo at jhur1@bloomberg.net To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net Sponsored Links

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