Gold climbed for a second session as some investors bought the metal after prices dipped earlier on speculation that China’s second interest-rate hike since mid- October may curb demand for commodities. Immediate-delivery gold gained 0.2 percent to $1,384.20 an ounce at 1:06 p.m. in Seoul, reversing an earlier loss of as much as 0.6 percent to $1,372.80. The price rose 0.4 percent last week, the first weekly gain in three. Gold for February delivery on the Comex in New York was 0.3 percent higher at $1,384.10 an ounce. The market was closed on Dec. 24. The People’s Bank of China increased key one-year lending and deposit rates by 25 basis points on Christmas Day. The change took effect yesterday. “Gold opened a bit lower this morning because of China’s interest-rate hike,” Bruce Ikemizu, head of commodity trading at Standard Bank Plc in Tokyo, said by phone today. “There seems to be quite good physical buying interest around $1,370 for gold. Those people waited for this chance and grabbed it.” Bullion reached a record $1,431.25 an ounce on Dec. 7 and is heading for a 10th consecutive annual gain, the longest winning streak in at least nine decades. “China’s interest-rate hike has stoked concern that the global economic recovery as well as demand for commodities may slow,” said Hiroyuki Kikukawa, general manager of research at IDO Securities Co. in Tokyo. The dollar was little changed against a basket of six major counterparts after China’s rate increase and before data forecast to show strengthening U.S. consumer confidence. The U.S. currency typically moves inversely to precious metals. Gold assets held in exchange-traded products fell 3.12 metric tons to 2,101.3 tons on Dec. 23, according to data compiled by Bloomberg from 10 providers. Holdings reached a record 2,114.6 tons on Dec. 20. Silver for immediate delivery rose 0.3 percent to $29.2232 an ounce after dropping as much as 1.1 percent earlier. The metal has climbed 73 percent this year. Platinum gained 0.3 percent to $1,735.75 an ounce, erasing a 1.6 percent loss. Palladium traded little changed at $763.13 an ounce after losing as much as 2.1 percent. Both metals are used to make jewelry and pollution-control devices for cars. To contact the reporter on this story: Jae Hur in Tokyo at jhur1@bloomberg.net; Sungwoo Park in Seoul at spark47@bloomberg.net. To contact the editor responsible for this story: Richard Dobson at Rdobson4@bloomberg.net

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