Gold advanced a second day, extending gains for a sixth week and headed for its best quarter since 2010, on speculation that governments will increase stimulus to spur global economic growth. Spot gold rose as much as 0.3 percent to $1,782.36 an ounce, the highest level since Sept. 21, and was at $1,782.18 an ounce at 1:26 p.m. in Singapore. Prices were poised to rise 0.5 percent this week for the best winning run since August 2011. The metal is up 12 percent this quarter, the biggest such gain since June 30, 2010. The advance this year is 14 percent. Japan’s consumer prices in August matched the steepest decline in 16 months and industrial production fell more than economists forecast. Chinese industrial companies’ profits dropped for a fifth month. The data have increased expectations that governments will do more to boost their economies. China approved a subways-to-roads construction plan this month and the Federal Reserve announced a third round of debt-buying. The European Central Bank will buy unlimited amounts of bonds and the Bank of Japan (8301) added to a fund that buys assets. “It’s been a direct reaction to the stimulus measures put in place by the Federal Reserve,� said Gavin Wendt, founder and senior resource analyst at Mine Life Pty in Sydney. “One of the things providing additional support is speculation around� stimulus in China, he said. December-delivery bullion gained as much as 0.2 percent to $1,784.70 an ounce on the Comex. In China, cash gold of 99.99 percent purity on the Shanghai Gold Exchange rose as much as 1.1 percent to 360.20 yuan ($57) a gram, up 12 percent this quarter. Holdings in exchange-traded products backed by gold stood at 2,544.32 metric tons yesterday, data tracked by Bloomberg show. Assets have climbed 8 percent this year, reaching a record 2,551.86 tons on Sept. 25, the data show. Spot silver rose as much as 0.6 percent to $34.84 an ounce and was at $34.75. Prices are set to climb 26 percent this quarter, the biggest gain since the three months ended December 2010. Immediate-delivery platinum rose as much as 0.9 percent to $1,665 an ounce, the highest since Sept. 18, and is set to gain 15 percent this quarter. Palladium gained 0.7 percent to $638.95 an ounce, up 9.6 percent since June 30. To contact the reporter for this story: Phoebe Sedgman in Melbourne at psedgman2@bloomberg.net To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net

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