Gold Surges Above $900 Over Record Crude

Gold rose to its highest level in almost two weeks on Monday, moving back above $900 as speculative buying picked up after oil hit a record high, lifting the metal's appeal as a hedge against inflation.

Gold rose as high as $904.10 an ounce, its highest level since May 28, up from $896.80/898.20 late in New York on Friday and off a three-week low of $864.45 on Thursday.

A weaker dollar helped gold as it boosted the metal's appeal as an alternative investment to stocks and bonds. The euro was barely changed at $1.5770 after edging up to $1.5800 on trading platform EBS.
Record high oil and uncertainties in the dollar outlook pushed up gold to a record high of $1,030.80 in mid-March.

Gold futures for June delivery on the COMEX division of the New York Mercantile Exchange added $5.1 an ounce to $904.1.
The physical sector was slow, with a market holiday in Hong Kong. In Southeast Asia, dealers noted buying from Indonesia, Thailand and Vietnam on inflation fears, but firmer prices also triggered selling.