Gold rose for a second day in London as falling equity markets boosted demand for the precious metal as an alternative investment. Stocks in Europe and Asia fell for the first time in three days today and U.S. futures slid as Japan confirmed its economy shrank at the fastest pace since 1974. Assets in the SPDR Gold Trust, the biggest exchange-traded fund backed by bullion, advanced 0.9 percent to a record 1,038.17 metric tons yesterday. Gold “should benefit further in the coming sessions by renewed investment demand as the economic and financial sector outlook deteriorates further,” James Moore, an analyst at TheBullionDesk.com in London, wrote today in a note. “While rallies towards $950 are likely to run into further pockets of long liquidation we expect dips to remain well supported.” Gold for immediate delivery rose as much as $6.85, or 0.8 percent, to $916.25 an ounce and traded at $914.83 by 9:08 a.m. in London. April futures added $3.40, or 0.4 percent, to $914.10 an ounce in electronic trading on the New York Mercantile Exchange’s Comex division. The SPDR holdings are just behind the 1,040.1 tons held by Switzerland, the sixth-largest stockpile. Assets in the fund have increased by 33 percent since the start of the year as investors sought a haven amid the worsening economic crisis. Numis Securities Ltd. today raised its 2009 gold forecast by 29 percent to $900 an ounce because of a “period of increased turmoil.” Among other metals for immediate delivery in London, silver added 0.7 percent to $12.90 an ounce. Platinum lost 0.5 percent to $1,048, and palladium rose 0.3 percent to $198 an ounce.

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