Feb. 22 (Bloomberg) — Gold, little changed in London, headed for its biggest weekly advance in 19 months as lower U.S. interest rates may revive investor demand for the metal as an alternative to the dollar. Platinum dropped from a record.

The dollar traded near a three-week low against the euro on speculation U.S. economic growth will slow, forcing the Federal Reserve to lower interest rates. Gold has climbed 45 percent since the Fed in August announced a policy shift to contain the subprime mortgage collapse.

“It’s been six months this week since the Fed started cutting interest rates and gold has gone nuts,” said Adrian Ash, head of research of London-based BullionVault, a gold dealer that holds about six tons of gold for customers in vaults in London, Zurich and New York. “The more the Fed promises cheaper money, the more people will choose an alternative to the dollar.”

Gold for immediate delivery rose 9 cents, or less than 0.1 percent, to $946.19 an ounce as of 10:54 a.m. in London. Prices this week are up 4.8 percent, the biggest weekly advance since July 14, 2006. Read Full Story

Feb. 18 (Bloomberg) — A collection of war medals that includes nine Victoria Cross medals, stolen from a New Zealand army museum more than two months ago, was recovered after police offered a reward for their return.

The medals were returned in good condition, New Zealand Police said in a statement e-mailed Feb. 16. The offer of a NZ$300,000 reward ($237,000) last month, the largest incentive ever posted in New Zealand, was instrumental in the medal’s return and a sum of money has been paid, the police said.

The 96 medals were stolen from an annex of the Waiouru Army Museum on New Zealand’s North Island on Dec. 2. They included a Victoria Cross and Bar awarded to Charles Upham, New Zealand’s most decorated soldier, as well as two George Medals and one Albert medal. The Victoria Cross is the highest military honor awarded to soldiers serving in the U.K. and in former British Empire countries.

The reward “encouraged a person to come forward and facilitate the return of the medals to police,” said Detective Senior Sergeant Chris Bensemann, head of the task force investigating the theft. “New Zealand Police celebrate the return of these national treasures.” Read Full Story

Gold rose after an emergency cut in U.S. borrowing costs reduced the value of the dollar, boosting the appeal of the precious metal as an alternative investment.

The Federal Reserve slashed its benchmark interest rate 0.75 percentage point to 3.5 percent after global equity markets tumbled on concern the slumping U.S. economy will drag down the growth rates of other nations. Gold rallied 31 percent in 2007 after the Fed cut rates by 1 percentage point, sending the dollar down 9.5 percent against the euro.  Read Full Story

Venezuelan President Hugo Chavez’s latest effort to reduce Latin America’s highest inflation rate revives a coin rooted in Venezuela’s colonial past: the “locha,” based on the old Spanish “piece of eight.”

The locha is worth 12.5 cents, or an eighth of a new “strong bolivar,” a currency that debuted today with seven new coins and six new bills. Chavez says the new bolivar, created by lopping three zeros off the old currency, will simplify pricing and help slow consumer price increases.

“During the 1940s and through the 1960s, the locha was one of the most popular coins,” Armando Leon, a director of the central bank, said in an interview in Caracas. “It circulated during a very long period of stability.” Read Full Story