Gold Gained Immediately After Crude Price Jumped

Gold prices gained as crude oil traded near a two-month high, stoking concern over rising raw material prices and prompting investors to buy the precious metal as a hedge against inflation.

Gold for immediate delivery gained as much as $2.63, or 0.4 percent, to $648.22 an ounce, and traded at $647.30 at 3:31 p.m. Singapore time.

Gold for February delivery gained $1.8, or 0.3 percent, to $652.40 an ounce on the Comex division of the New York Mercantile Exchange at 3:26 p.m. Singapore time, after rising as high as $653.90. A futures contract is an obligation to buy or sell a commodity at a set price for delivery by a specific date.