Gold prices rose in New York on speculation higher energy costs will boost the appeal of the precious metal as an inflation hedge.
Gold sometimes moves in the same direction as the price of oil, which have more than doubled in the past five years. Gold reached a 26-year high of $732 an ounce in May as oil climbed to the highest ever in July.
„Oil is providing some support for gold,” said Tom Hartmann, commodity broker at Altavest Worldwide Trading Inc. in Mission Viejo, California. Gold futures for April delivery rose $1.50, or 0.2%, to $650.60 an ounce at 9:14 a.m. on the Comex division of the New York Mercantile Exchange.
Before today, prices had gained 14% in the past year. A futures contract is an obligation to buy or sell a commodity at a set price for delivery by a specific date. (Bloomberg)