Gold prices rose to the highest in more than 25 years
Gold prices rose to the highest in more than 25 years as investors bought bullion to hedge against rising energy prices and to diversify assets, Bloomberg reported.
Crude oil traded near a record in New York on concern a dispute over Iran's nuclear program will disrupt oil supplies and spur inflation. Some investors buy gold as inflation increases to preserve purchasing power.
Gold for immediate delivery rose as much as $5.42, or 0.9 percent, to $618.90 an ounce, the highest since Dec. 5, 1980. It traded at $615.13 at 4:11 p.m. Sydney time.
The precious metal surged to $873 an ounce in 1980, when consumer prices jumped more than 12 percent.
Crude oil for May delivery rose as much as 0.5 percent to $70.78 a barrel, up 38 cents from yesterday's record close of $70.40. The record intraday high of $70.85 a barrel was reached Aug. 30.