Gold gained for a second day in London and climbed toward a record as concern about slowing growth spurred demand for the metal as a protection of wealth.

President Barack Obama yesterday proposed a $447 billion plan to create jobs and boost the U.S. economy, while Federal Reserve Chairman Ben S. Bernanke said policy makers will discuss the tools they may need to use to aid the recovery at their meeting this month. European equities fell today after the European Central Bank yesterday cut its growth forecasts for this year and next.

“Given the lack of other reliable safe-haven assets, gold is the best alternative in investors’ eyes,” Andrey Kryuchenkov, an analyst at VTB Capital in London, wrote today in a report. “Given the ongoing uncertainty and constant fear of global growth risks, the downside in gold remains limited.”

Immediate-delivery gold gained $13.25, or 0.7 percent, to $1,883.43 an ounce by 9:45 a.m. in London. The metal touched a record $1,921.15 on Sept. 6 and is little changed this week. Gold for December delivery was up 1.5 percent at $1,886.20 on the Comex in New York.

Bullion is in the 11th year of a bull market, the longest winning streak since at least 1920 in London, as investors seek to diversify away from equities and some currencies. The metal is up 33 percent this year, outperforming global stocks, commodities and Treasuries.

Infrastructure Spending

Obama, speaking before a joint session of Congress, demanded six times that lawmakers act “right away” on a plan that would boost spending on infrastructure, stem teacher layoffs and cut in half the payroll taxes paid by workers and small business owners. Job growth stalled last month and the unemployment rate has hovered at or above 9 percent for more than two years.

“The plan reflects the government’s deep concern about the economy, raising the real possibility of another round of quantitative easing, which is supportive of gold,” said Duan Shihua, head of corporate services at Haitong Futures Co. in Shanghai.

Gold exchange-traded-product holdings fell yesterday, declining 3.2 metric tons to 2,137.9 tons, data compiled by Bloomberg show. Assets reached a record 2,216.8 tons on Aug. 8.

Silver for immediate delivery rose 0.6 percent to $42.575 an ounce. Platinum was little changed at $1,862.50 an ounce. Palladium gained 0.4 percent to $761.75 an ounce. – Bloomberg