Daily Gold Update

Source:Bloomberg

Seattle— Gold rose to the highest in almost four weeks as a weaker dollar and soaring energy costs boosted the precious metal's appeal as a hedge against inflation. Silver jumped 3 percent. Crude-oil futures surged to a record $129.58 a barrel and have doubled in the past year. The dollar fell the most in a month against the euro. A government report today showed U.S. producer prices, excluding food and fuel, rose more than forecast in April. Food costs last month surged the most in 18 years. Gold still is down 11 percent from a record on March 17.

“Gold is attempting to hold on to the rally on the strength of the crude and the euro,'' said Frank McGhee, the head metals trader at Integrated Brokerage Services LLC in Chicago. “The market, technically, is turning itself around.'' Gold futures for June delivery climbed $16.30, or 1.8 percent, to $922.10 an ounce at 11:56 a.m. on the Comex division of the New York Mercantile Exchange. Earlier, the price reached $922.70, the highest for a most-active contract since April 23. Silver futures for July delivery jumped 51.7 cents to $17.545 an ounce. Before today, the price advanced 14 percent this year, while gold climbed 8.1 percent. See full story.