Gold gains on oil prices, weak dollar

Precious metals prices were mixed as platinum fell but gold and silver both saw gains on concerns about inflation as crude oil prices spiked to a new record at $129.58 per barrel in New York.

The dollar was weaker on a report that producer prices jumped 0.2 percent, more than expected, in April, and as the International Monetary Fund said that problems in the US housing market still represent a threat to the global economy.

June gold added $14.50 to $920.30 per troy ounce in New York while July silver gained 65 cents to $17.68 per troy ounce, but July platinum dropped $8.20 to $2,150 per troy ounce.

Meanwhile, July copper added 1 cent to $3.78 per pound in New York but three-month copper dropped $3 to $8,312 per tonne in London, with gains in New York coming on the possibility that the weakness of the dollar could boost demand as investors look for ways to protect their money from inflation.