Gold gained as the dollar declined for the first day in three, increasing demand for the precious metal as a haven against weakening currencies. Immediate-delivery gold climbed as much as 0.3 percent to $1,329.15 an ounce and traded at $1,327.80 at 5:28 p.m. in Melbourne. The dollar fell 0.5 percent against a basket of six counterparts. Gold reached a record $1,387.35 on Oct. 14. “The reason you are seeing some buying in gold is because of concerns around the stability of the U.S. dollar,” Ben Westmore, a minerals and energy economist at National Australia Bank Ltd. in Melbourne, said today. The “choppy” trading may continue ahead of a Federal Reserve meeting next week, he said. The dollar rallied and commodities fell yesterday amid speculation that any monetary program by the Fed to boost the U.S. economy will be gradual. The greenback has declined this month on concern that the currency may be devalued by further monetary easing that could be announced next week. Estimates for the ultimate size of the asset-purchase program range from $1 trillion at Bank of America-Merrill Lynch to $2 trillion at Goldman Sachs Group Inc., with economists at both firms agreeing the Fed will likely start by announcing $500 billion after the Nov. 2-3 meeting. The Fed has asked bond dealers and investors for projections of central bank asset purchases over the next six months, along with the likely effect on yields, according to a survey obtained by Bloomberg News. Futures Gain Gold for December delivery on the Comex in New York rallied as much as 0.5 percent to $1,329.50 an ounce. The contract settled at $1,322.60 yesterday, the lowest closing price for the most-active futures since Oct. 4. “There would be people who have been on the sidelines looking to increase their positions in gold in periods of price weakness,” said Gavin Wendt, a senior resource analyst at MineLife Pty in Sydney. “That is what we are seeing today, some buying coming into the market.” The dollar declined to $1.3825 per euro as of 6:55 a.m. in London from $1.3769 in New York yesterday, the biggest daily decline since Oct. 20. China should buy gold to diversify its foreign-exchange reserves, International Business Daily, a newspaper affiliated with the Ministry of Commerce said yesterday. The country should raise holdings of the metal if it wanted to “internationalize” its currency, the paper said, citing Meng Qingfa, a researcher at the China Chamber of International Commerce. Silver Gains Silver for immediate delivery traded little changed at $23.595 an ounce after earlier gaining as much as 0.6 percent. The metal for December-delivery on the Comex gained 1 percent to $23.63 after losing 1.8 percent yesterday. JPMorgan Chase & Co. and HSBC Holdings Plc were sued by an investor claiming that, starting in March 2008, they manipulated silver futures and options prices in violation of U.S. antitrust law by placing “spoof” trading orders, according to a complaint filed yesterday in federal court in Manhattan. Joseph Evangelisti, a spokesman for New York-based JPMorgan, declined to comment. Juanita Gutierrez, a spokeswoman for London-based HSBC, also declined to comment. Palladium for immediate delivery rose as much as 1 percent to $622.50 an ounce after reaching a nine-year high of $637.75 yesterday. Platinum gained 0.2 percent to $1,683.50 an ounce. To contact the reporter on this story: Wendy Pugh in Melbourne at wpugh@bloomberg.net To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net

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