Gold rose to the highest price since March as a slump in global equity markets increased the appeal of precious metals as an alternative investment. Silver touched the highest since February. Stocks in Asia, Europe and the U.S. dropped after records showed that Federal Reserve policy makers saw risks last month to a U.S. economic recovery, and some Fed officials said more asset purchases may be needed to secure a stronger economic recovery. Some investors buy gold as a store of value when stocks decline. “The fact equity markets appear to have stalled and inflation fears are on the increase should give gold increased upward momentum,” James Moore, an analyst at TheBullionDesk.com in London, wrote in a note today. Gold futures for June delivery gained $13.80, or 1.5 percent, to $951.20 an ounce on the New York Mercantile Exchange’s Comex division. Earlier, the price reached $951.80, the highest for a most-active contract since March 23. Bullion for immediate delivery in London jumped $16.19, or 1.7 percent, to $954.84 at 7:23 p.m. Silver futures for July delivery climbed 16.5 cents, or 1.2 percent, to $14.445 an ounce in New York, after earlier touching $14.51, the highest since Feb. 24. The metal surged 28 percent this year, while gold is up 7.6 percent. “Gold prices are expected to continue on their upward path in the near term, with the next key resistance offered at $970 from the March 20 high,” Tom Pawlicki, an analyst at MF Global in Chicago, said in a report today. Platinum Group Metals Platinum futures for July delivery gained $9.30, or 0.8 percent, to $1,154.70 an ounce on the New York Mercantile Exchange. The price rose 23 percent this year. Palladium futures for June delivery fell 35 cents, or 0.2 percent, to $235.50 an ounce in New York, after four straight sessions of gains. The price jumped 25 percent this year. Gold may climb near $967.30 if it breaches a so-called technical level at $946, TheBulionDesk.com’s Moore wrote. Some Fed members noted the possible need for “a further increase in the total amount of purchases” of assets to spur an economic recovery, according to minutes of an April 28 to April 29 meeting released yesterday. Governors and district-bank presidents cut growth projections submitted to the meeting. The Fed’s consideration of enlarged asset purchases raises “concerns the global financial system could be flooded with more dollars,” said Pradeep Unni, an analyst at Richcomm Global Services DMCC in Dubai. “Fears of future inflation and ongoing financial uncertainty could support the metal.” Gold ETF Investment in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, was unchanged at 1,105.62 metric tons yesterday, the company’s Web site showed. Holdings in ETF Securities Ltd.’s exchange-traded commodities added 0.5 percent yesterday to 7.528 million ounces, according to its Web site. In London, the metal increased to $940 in the morning “fixing,” used by some mining companies to sell production, from $939.50 at yesterday’s afternoon fixing. The MSCI World Index of shares declined for the first time in four days today and had its first weekly drop last week since early March. “The market remains overheated, and we just need a little more gain on equities to dampen bullish sentiment on gold,” Andrey Kryuchenkov, an analyst at VTB Capital in London, wrote today in a report. “At these favorable levels, physical trade starts selling scrap metal.” “If the green shoots turn brown and fall off, the dollar could quickly become the safe haven of choice for those seeking shelter,” Jon Nadler, a senior analyst at Kitco Inc. in Montreal, said today in a report. Gold often falls when the dollar gains, as demand for the metal as a hedge declines. Silver assets in ETF Securities’ exchange-traded commodities increased 1 percent to 19.738 million ounces yesterday, the company’s Web site showed.

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