mahikarnam

Gold rose in Asia as increased energy costs and declining equity markets from the U.S. to Asia boosted demand for the precious metal as a haven asset.

Crude oil gained for the second day in Asia after Royal Dutch Shell Plc reduced Nigerian production because of an attack on a pipeline by militants. Asian stocks fell today, pacing a drop in the U.S. market after the Dow Jones Industrial Average lost more than 200 points for the second time in three days.

``A potentially inflationary oil prices rise coupled with further stock market woes increased'' bullion's appeal as a ``relatively safe investment,'' Darren Heathcote, head of trading at Investec Bank Ltd., wrote in a report today.

Gold for immediate delivery gained as much as $2.87, or 0.3 percent, to $933.49 an ounce, before trading at $933.03 at 9:50 a.m. in Singapore. Silver added 0.5 percent to $17.605 an ounce.

Crude oil in New York rose 0.5 percent to $125.40 a barrel at 9:54 a.m. in Singapore, 2.4 percent higher than a low of $122.50 on July 25.

Asian stocks fell after the International Monetary Fund said there is no end in sight to the U.S. housing recession and as higher energy costs erode earnings.

December-delivery gold was up 0.5 percent at $942.30 an ounce in after-hours electronic trading on Comex at 10:01 a.m. in Singapore, while gold for December delivery traded in Shanghai gained 0.5 percent to 205.50 yuan a gram ($936 an ounce).

Gold for June 2009 delivery was little changed at 3,249 yen a gram ($941 an ounce) on the Tokyo Commodity Exchange.