Gold Gains a Second Day in London on Concerns Growth Is Slowing

Immediate-delivery gold gained $8.38, or 0.5 percent, to $1,774.22 an ounce by 11:38 a.m. in London. The metal touched a record $1,814.95 on Aug. 11. Gold for December delivery was up 1 percent at $1,776.30 an ounce on the Comex in New York.

Bullion rose to $1,779 an ounce in the morning "fixing" in London, used by some mining companies to sell output, from $1,739 at yesterday's afternoon fixing.

Paulson is the biggest investor

Gold gained for a second day in London as concern over slowing economic growth boosted demand for the metal as a protection of wealth. John Paulson maintained the largest stake in the

The German economy, Europe's largest, almost stalled in the quarter as the region's sovereign-debt crisis weighed on confidence. Paulson & Co. kept 31.5 million shares in the

Gold Trust at the end of the period, now valued at $5.4 billion, according to a Securities and Exchange Commission filing. Billionaire George Soros and Eric Mindich cut their holdings in the exchange-traded product in the quarter.

"There are still far too many macro uncertainties at the moment, with softening economic readings

Soros Fund Management42,800 shares as of June 30, compared with 49,400 three months earlier, while Mindich's Eton Park Capital Management LP cut its stake to 813,000 shares from 2.328 million, separate filings showed. Eton Park and Steven A.

Holdings of the metal 3.8 metric tons to 2,185.9 tons yesterday, data compiled by Bloomberg show. Assets reached a record 2,216.8 tons last week as Standard & Poor's cut its U.S. credit rating and as speculation that Europe's sovereign-debt crisis may be worsening fueled demand for gold.

Germany's economy expanded 0.1 percent from the first quarter, less than the 0.5 percent forecast by economists. France's recovery unexpectedly ground to a halt in the second quarter, Italian and Spanish expansion remained sluggish, and Greece's economy contracted.

Gold is up 25 percent this year, heading for an 11th straight annual gain, the longest winning streak since at least 1920 in London.while Treasuries returned 6.5 percent in 2011, a Bank of America Merrill Lynch index showed. Bullion yesterday dropped as low as $1,728.40 an ounce

We've seen physical buyers come back into the market, and inquiries have picked up as prices fell toward the $1,730-$1,720 level,

a manager at China National Pearl Diamond Gem & Jewelry Import & Export Corp. The company is a member of the Shanghai Gold Exchange, China's largest physical market. "Physical buyers are adjusting to higher prices."

Economist Dennis Gartman is adding gold priced in euros and pounds to his holdings after "a correction of real consequence," he said today in his Suffolk, Virginia-based Gartman Letter. The metal reached all-time highs in those currencies last week.

Silver for immediate delivery fell 1.2 percent to $39.4025 an ounce. Palladium slipped 0.7 percent to $744.25 an ounce. Platinum was up 0.2 percent at $1,812.25 an ounce after reaching $1,824.50, the highest price since June 13.

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