Gold climbed as higher energy prices damped concern that inflation will remain low and revived demand for the precious metal as a store of value.
Crude futures in New York advanced for the second time in three days. The correlation between gold and oil rose close to 0.4 today, the strongest link since July 2013. A reading of 1 means the prices move in lockstep.
A whipsaw in oil is spurring the biggest price swings for gold in almost nine months. Commodity traders often track energy prices and their impact on consumer costs. In November, the metal slumped to a four-year low as the dollar rallied and demand ebbed for an inflation hedge after crude tumbled.
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