Gold rose to a two-month high in London as fighting in the Middle East and higher oil prices spurred demand for the metal as a haven and a hedge against inflation. The morning “fixing” used by miners to sell metal gained the most since at least 1984. Crude-oil futures increased on speculation about supply disruptions in the Middle East, the world’s largest producing region, after Israeli air strikes in the Gaza Strip. On Dec. 26, a U.K. holiday, gold jumped 2.6 percent, the most in two weeks, as Palestinian militants launched a rocket attack on Israel after a truce expired Dec. 19. “There is potential for more conflict to come and therefore it’s had an impact on gold and oil,” said Simon Weeks, a London-based managing director at ScotiaMocatta, the metal-trading unit of Canada’s Bank of Nova Scotia. “This is not bearish news.” Gold for immediate delivery jumped $14, or 1.6 percent, to $883.30 an ounce as of 12:52 p.m. in London and earlier gained to $890.49, the highest since Oct. 10. The fixing at 10:30 a.m. local time in London jumped $44.25, or 5.3 percent, to $881 an ounce. There were no price fixings on Dec. 25 and Dec. 26 because of public holidays. Futures for February delivery advanced $13.20, or 1.5 percent, to $884.40 in electronic trading on the Comex division of the New York Mercantile Exchange. Oil climbed as much as 12 percent. Alternative Investment Gold may climb to $935 an ounce by the end of next week on demand in the Middle East for the metal as a haven, and from investors who consider gold a better alternative to Treasuries, according to James Moore, an analyst at TheBullionDesk.com in London. The yield on 10-year notes was 2.14 percent, according to BGCantor Market Data. “Treasury yields are low and interest rates are at multi- year lows,” Moore said. “If you’re looking to safe-haven assets, gold has a pretty good proven track record.” Gold has climbed 6 percent this year, heading for an eighth consecutive annual gain. The London price fixing won’t take place on Jan. 1 because of the New Year’s Day holiday and there’s no afternoon pricing on Dec. 31, said Stewart Murray, chief executive officer of the London Bullion Market Association. Fixings will be back to normal on Jan. 2. Gold has increased this year while equities and most commodities declined because recessions in the U.S., Japan and Germany reduced demand for some raw materials. The metal gained to a record $1,032.70 an ounce in March. Eighteen of 25 traders, investors and analysts surveyed by Bloomberg News forecast higher gold prices this week. Among other precious metals, platinum for immediate delivery jumped $20.50, or 2.3 percent, to $911.50 an ounce and earlier traded up to $935, the highest since Oct. 16. Silver for immediate delivery rose 19.5 cents, or 1.8 percent, to $10.895 an ounce and palladium increased $8.50, or 4.8 percent, to $185.50 an ounce.

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