Gold advanced for a second day in London, buoyed by demand for the metal as a haven as equities continued to slide. Platinum also rose.

Australia slashed interest rates by the most in 16 years, fueling speculation other central banks plan a round of cuts to ease the financial crisis. The U.K. government may invest at least 45 billion pounds ($79 billion) in the country’s banks, which paced today’s decline in the FTSE 100 stock index.

Gold “should look to make further gains in the coming days as flight-to-safety demand increases,” James Moore, an analyst at TheBullionDesk.com, wrote today in a report. Strong physical demand will also support the metal, he wrote.

Gold for immediate delivery rose $23.74, or 2.8 percent, to $883.49 an ounce in London as of 9:39 a.m. in London. Futures for December rose $16.50, or 1.9 percent, to $882.70 an ounce in after-hours electronic trading on the Comex division of the New York Mercantile Exchange.

European equities extended their decline after sliding the most in 21 years yesterday on concern that financial firms may need more capital. Royal Bank of Scotland Group Plc tumbled 39 percent after the bank had its credit rating cut for the first time in 10 years on a weak “financial profile”

In Russia, share trading was suspended for a second day after its MIcex and RTS stock indexes plunged 19 percent yesterday.

`Volatile Times’

ETF Securities Ltd., a provider of contracts tracking commodities, said its physically backed gold products have attracted $93 million in investment in the past six days, the largest increase in 10 weeks.

“In volatile times like these, gold comes into its own,” ETF Securities Chief Operating Officer Nik Bienkowski said in a company statement. ETF manages ETFS Physical Gold.

Gold in the SPDR GOLD Trust, the largest exchange-traded fund backed by bullion, advanced 0.6 percent yesterday.

The amount of gold held by the company rose to 744.54 metric tons from 739.95 tons on Oct. 3, according to figures posted on the company’s Web site. The fund reached a record 755.26 tons on Sept. 30, an amount that would rank it eighth when compared with central bank holdings.

Among other metals for immediate delivery, silver rose 46 cents, or 4.2 percent, to $11.50 an ounce, platinum advanced $27, or 2.8 percent, to $1,000 and palladium added $5.25, or 2.7 percent, to $203 an ounce.