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By Bloomberg

Gold climbed to the highest level in almost four weeks as concern that global growth is slowing stoked bets the U.S. Federal Reserve may push back interest-rate increases, boosting demand for a store of wealth.

Gold for immediate delivery advanced as much as 1.2 percent to $1,237.86 an ounce, the highest price since Sept. 17, and traded at $1,234.01 at 2:50 p.m. in Singapore, according to Bloomberg generic pricing. Silver, platinum and palladium all increased at least 0.4 percent.

Bullion rose 2.7 percent last week for the biggest gain since the period to June 20 as the Bloomberg Dollar Spot Index snapped a seven-week rally and global equities measured by the MSCI All-Country World Index fell. Should overseas growth be weaker than expected, the effect on the U.S. economy may lead the Fed to remove accommodation more slowly than otherwise, Vice Chairman Stanley Fischer said on Oct. 11.

"Gold is going to be doubly influenced by both the equity markets and the dollar over the course of the week," Edward Meir, an analyst at INTL FCStone Inc., wrote in a note. "Both will continue to drop over the short term, offering a measure of support to prices."

The International Monetary Fund last week cut its forecast for global growth and said the euro area faces the risk of a recession. Traders see about a 33 percent chance the Fed will raise its benchmark rate at its July 2015 meeting, down from 59 percent on Sept. 18, according to data compiled by Bloomberg.
Singapore's Contract

Singapore Exchange Ltd., Southeast Asia's biggest bourse operator, started physically-settled kilobar gold trading today. The contract expiring tomorrow settled at $39.70 per gram ($1,234.67 an ounce).

Gold for December delivery rose as much as 1.3 percent to $1,238 an ounce on the Comex, the highest since Sept. 17. Futures were at $1,233.80, extending last week's 2.4 percent advance. Floor trading in New York is shut for a holiday and transactions will be booked tomorrow for settlement purposes.

Investors cut net-long positions in futures and options for an eighth week in the period ended Oct. 7, U.S. government data show. Holdings in the SPDR Gold Trust, the biggest exchange- traded product backed by bullion, fell to 759.44 metric tons on Oct. 10, the least since Dec. 2008.

Silver for immediate delivery climbed 0.8 percent to $17.5401 an ounce, after increasing 3.3 percent last week to snap five weeks of losses. Spot platinum added 0.3 percent to $1,265.50 an ounce, extending last week's 3.1 percent advance. Palladium rose 0.7 percent to $790.50 an ounce, after a 3.9 percent gain last week.