Daily Gold Update

Source: Bloomberg

New York— Gold rose to the highest price since March 2008, topping $1,000 an ounce, while silver climbed to a 13-month high as a weaker dollar and concern that inflation may accelerate boosted the appeal of precious metals. Bullion surged as high as $1,009.70 in New York, within 3 percent of the record of $1,033.90 set in March 2008. The metal is headed for a ninth annual gain. Crude oil and all six industrial metals on the London Metal Exchange rallied as the U.S. Dollar Index fell as much as 1.2 percent to an 11-month low. Raw materials typically rise when the greenback falls. Equity indexes climbed from Tokyo to London and New York.

�The market thinks inflation is coming,� Leonard Kaplan, the president of Prospector Asset Management in Evanston, Illinois, said by telephone. Governments have cut interest rates and boosted spending to fight the worst recession since World War II, spurring investors to buy bullion as a hedge against the prospect of accelerating inflation and currency debasement. Gold, silver and palladium holdings in exchange-traded funds have reached records. Gold previously traded at more than $1,000 on Feb. 20, the first time the metal had surpassed that price since March 2008. Futures dropped as low as $865 on April 6. The metal advanced $3.10, or 0.3 percent, to $999.80 an ounce on the New York Mercantile Exchange�s Comex division. In London, bullion for immediate delivery surged as high as $1,007.70 and traded at $995.75 at 8:25 p.m. local time. See full story.