Gold On 9 Month High On Inflation Concern

Gold traded near a nine-month high in Asia after rising on inflation concern, stoked by high oil prices, which boosted the precious metal's appeal as a hedge. Tokyo gold futures rose to a 21-year high.

A U.S. government report yesterday showed consumer prices rose more than forecast in January, and crude oil in New York rose above $60 a barrel. Some investors buy gold when energy expenses climb. Gold futures reached a record $873 an ounce in January 1980 when oil costs doubled in a year, fueling inflation.

Gold for immediate delivery was little changed at $677.65 at 3:13 p.m. Sydney time after rising 3.3 percent yesterday, when it reached a nine-month high of $682.25. Gold has risen 8.4 percent in the past six months.