By Pham-Duy Nguyen Aug. 30 (Bloomberg) -- Gold futures fluctuated on speculation that a decline in equities will boost demand for the metal as a haven. U.S. stocks fell, extending three weeks of losses, after slower-than-forecast growth in personal incomes added to concern that the economic rebound is slowing. Before today, gold gained 13 percent this year, reaching a record $1,266.50 an ounce in June. “Gold is sitting in the middle of a trading range,” said Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago. “Gold can benefit from a sell-off in equities on fear, or it can rally on expectations of quantitative easing. The downside is really short-term.” Gold futures for December delivery rose $1.70, or 0.1 percent, to $1,239.60 an ounce at 9:48 a.m. on the Comex in New York. Earlier, the price fell as much as 0.2 percent. Federal Reserve Chairman Ben S. Bernanke said on Aug. 27 that the central bank will “will do all it can” to ensure a recovery. The economy grew at 1.6 percent in the second quarter, less than the government predicted last month. The Fed has kept the main interest rate between zero and 0.25 percent since December 2008 to revive the economy. The central bank has also purchased mortgage-backed securities to help push down mortgage rates to support the housing market. “Amid all this negativity on the housing market, the economy, and thus the stock market, we find it to be an easy argument to make that gold prices will benefit due to competition with these other assets,” said Tom Pawlicki, an analyst at MF Global Ltd. in Chicago. Silver futures for December delivery rose 10.1 cents, or 0.5 percent, to $19.175 an ounce on the Comex. Platinum futures for October delivery fell $2.50, or 0.2 percent, to $1,534.50 an ounce on the New York Mercantile Exchange Palladium futures for December delivery lost $1.70 or 0.3 percent, to $502.95 an ounce. To contact the reporter on this story: Pham-Duy Nguyen in Seattle at pnguyen@bloomberg.net.

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