Gold, Oil: Directly-Proportional Growth

Monday gold inched up after oil moved to another record high above $119 a barrel.

Oil rose to $119.93 a barrel after BP Plc shut a North Sea pipeline and gunmen attacked a police station in Bonny Island, the site of one of Nigeria's largest oil and gas export terminals.

Gold surged 31 percent last year as oil soared 57 percent, spurring the biggest gain in the U.S. inflation rate since 1990.

Bullion for immediate delivery gained as much as $7.60, or 0.9 percent, to $893.90 an ounce and traded at $893.63 an ounce at 11:15 a.m. in Singapore.

June-delivery crude oil traded at $119.40 a barrel in after-hours electronic trading on the New York Mercantile Exchange.

Investors have been increasing bets in recent weeks that policy markers will pause after this week's cut, according to Bloomberg data, as concerns over inflation mount.

Gold for June delivery was up 0.7 percent at $895.70 an ounce in after-hours electronic trading on Comex at 11:17 a.m. Singapore time.

Gold for April 2009 delivery advanced 1.3 percent to 3,032 yen a gram ($901 an ounce) at the 11:00 a.m. local time break on the Tokyo Commodity Exchange. Gold for December delivery traded in Shanghai gained 0.8 percent to 199.94 a gram ($888 an ounce) at 11:18 a.m. local time.