Gold Prices Climb to Seven-Week High as Energy Costs Gain

Gold prices in New York rose to the highest in seven weeks as an increase in energy costs boosted the appeal of the precious metal as a hedge against inflation.

The Organization of Petroleum Exporting Countries, already producing near its limit, agreed yesterday to boost output quotas for a fifth time in a year with an option to raise production again as needed. OPEC today raised its forecast for the amount of oil that members will have to pump to meet demand. Oil prices have climbed 6 percent this week.

“People are speculating that oil will rise, and that will lead to inflation,” said Patrick Chidley, an analyst in New York with South Africa-based brokerage Barnard Jacobs Mellet LLC. “That is something that naturally effects gold because it’s an inflation hedge.”
Bloomberg