Gold futures rose the most this month as grain and energy prices surged, boosting the appeal of the precious metal as a hedge against inflation. Silver jumped almost 4%.
The Thomson Reuters/Jefferies CRB Index of 19 raw materials gained as much as 2.6%. Global food costs are close to the highest ever, according to the United Nations, and crude oil topped $100 U.S. a barrel today. Analysts surveyed by Germany’s Ifo research institute raised their 2010 global inflation forecast to 3.8% from 3.4%.
Gold futures for June delivery rose $15.80, or 1.1%, to settle at $1,495.80 U.S. an ounce at 1:43 p.m. on the Comex in New York, the biggest gain since April 29.
Accelerating inflation, Europe’s debt crisis, a slumping dollar and fighting in Libya boosted gold to a record $1,577.40 U.S. on May 2.
Gold held in exchange-traded products fell 1.49 metric tons to 2,037.8 tons yesterday, the lowest since April 7, data compiled by Bloomberg show. Futures have dropped 3.9% this month.
