VINACHEM

Gold traded near the highest levelin almost two weeks on prospects for additional stimulus fromcentral banks in Europe and Japan and signs of increasedphysical demand in Asia.

Spot gold traded at $1,593.45 an ounce at 2:29 p.m. inSingapore from $1,592.80 yesterday, when it climbed to $1,598.80,the highest intraday price since Feb. 28. Gold for Aprildelivery was little changed at $1,591.90 an ounce on the Comexafter four days of gains, the best run since August.

The European Central Bank will maintain its accommodativestance “as long as necessary,” according to Jens Weidmann, anECB council member and head of Germany’s Bundesbank. A reportyesterday that showed industrial output fell in January boostedspeculation the Bank of England may add to stimulus. In Japan,two opposition parties said today they will endorse Kikuo Iwatafor Bank of Japan deputy governor, increasing the likelihoodPrime Minister Shinzo Abe will win confirmation for his pro-stimulus central-bank nominees as he seeks to end deflation.

“Easier global monetary policies have positiveramifications for bullion,” Howard Wen, an analyst at HSBCSecurities (USA) Inc., wrote in a note. “The key support forbullion prices has been the emergence of Chinese physical buyers.Indian merchants noted that demand may pick up in April on theresumption of the wedding and festival season.”

Daily volumes for the benchmark cash contract on theShanghai Gold Exchange have been more than double the average in2012 since Feb. 18, when it reached a record 22,024 kilograms,according to bourse data.

Spot gold is down 4.9 percent this year amid speculationthat the U.S. Federal Reserve may rein in its stimulus as therecovery in the largest economy gains traction. Data today mayshow U.S. retail sales advanced in February for a fourth month.Assets in gold-backed exchange - traded products dropped to2,472.891 metric tons yesterday, the lowest since September.

ETP holdings are a so-called key variable to watch, showinghow committed investors are to gold, Diego Parrilla, chiefinvestment officer of Singapore-based Nareco Advisors, said at aconference in the city-state today.

Cash silver was little changed at $29.16 an ounce and spotplatinum fell 0.3 percent to $1,591.25 an ounce. Palladium lost0.4 percent to $769.50 an ounce, declining for a third day.