May 16 (Bloomberg) -- Gold rose the most in 10 weeks as energy costs surged to a record and the dollar weakened, boosting the appeal of the precious metal as a hedge against inflation. Silver also gained.
Crude-oil futures reached $127.82 a barrel, the highest ever, and the dollar fell for the first time in four sessions against the euro. Gold is still down 13 percent from a record $1,033.90 an ounce on March 17, when oil and the euro set previous highs.
``The gold and crude-oil relationship is out of whack and due to adjust,'' said James Turk, founder of GoldMoney.com, which held $355 million in gold and silver in storage for investors at the end of April. ``Gold has a lot of catching up to do and will rise as a result.''
Some investors also purchased gold on speculation higher energy costs will spur inflation. Goldman Sachs Group Inc. today raised its price estimate for crude oil in the second half to $141 a barrel, from $107.
