Gold, oil, grain prices rise

Gold and silver ended the week higher after inflation fears prompted investors to pile their money back into hard assets.

Gold for June delivery rose US$25.20 Friday to settle at US$1,556.40 an ounce, while silver for July delivery gained US$1.058 to settle at US$48.599 an ounce.

Precious metal prices had fallen early in the week as some traders thought the historically high prices were unsustainable. That momentum reversed Wednesday when the US Federal Reserve said it would keep interest rates near zero for the time being. That made traders worry about inflation and shift money into gold.

Once gold prices started running up, they were accelerated by so-called "momentum" trading, when investment firms start snapping up contracts simply because they're getting more expensive, said George Gero, vice-president at RBC Global Futures.

"This is what momentum traders love, and they climb aboard when they see these things come together," Gero said.

Other metals also rose, with the exception of copper.

July copper fell 8.25 cents to settle at US$4.179 a pound. July platinum gained US$25.60 to settle at US$1,865.50 an ounce and June palladium rose US$16.85 to US$792.15 an ounce.

Grains

Grains and soybeans rose. Corn for July delivery rose 27.25 cents, to settle at US$7.2925 a bushel Thursday. Soybeans rose 40.5 cents to US$13.94 a bushel.

July wheat climbed 23.75 cents to US$8.0125 a bushel.

Inflation fears also pushed up oil prices. Benchmark crude for May delivery rose US$1.07 to settle at US$113.93 per barrel on the New York Mercantile Exchange.

In other Nymex trading, heating oil fell 2.99 cents to settle at US$3.2758 per gallon, gasolene rose 2.88 cents to US$3.3984 per gallon and natural gas rose 1.28 cents to US$4.761 per 1,000 cubic feet.

- AP