Aug. 4 (Bloomberg) -- Gold prices rose in New York for the sixth session in seven as energy costs climbed, increasing the precious metal's appeal as a hedge against inflation.

Crude-oil prices rose for the fifth time in six sessions, reaching a record $62.50 a barrel yesterday. Some investors buy gold in times of inflation, which erodes the value of fixed-income assets such as bonds.

``The continued increase in the price of crude'' is helping to push gold prices higher, said Frank McGhee, head trader at brokerage Alliance Finance LLC in Chicago. ``Gold, given its move, is well supported.''

Gold futures for December delivery rose $1, or 0.2 percent, to $443.70 an ounce on the Comex division of the New York Mercantile Exchange. The metal gained 3.4 percent in the last seven sessions.

Crude oil rose as surging fuel demand may force U.S. refiners to deplete stockpiles. Consumers of winter fuels should expect to pay more than last year, the Energy Department said yesterday. Gasoline stockpiles last week fell more than four times as much as expected.

Crude for September rose 89 cents, or 1.5 percent, to $61.75 a barrel on the New York Mercantile Exchange. Oil has climbed 45 percent in the past year, almost doubling from two years ago.

``Crude oil has a big effect on gold,'' said George Gero, senior vice president at Legg Mason Wood Walker in New York. ``As crude-oil prices go up internationally, gold also goes up as a store of value.''

Glamis Gold

Glamis Gold Ltd., the fifth-largest gold producer in North America by market value, today said second-quarter profit almost tripled from a year ago as it opened a mine in Mexico and expanded another in Nevada.

Shares of Glamis rose 35 cents, or 1.5 percent, to $23.26 in New York Stock Exchange composite trading. Before today, the stock had risen 9.9 percent in this year.

Gold also rose as the euro climbed to $1.24 for the first time since May, boosting the metal's appeal as an alternative investment. The euro rose after a German government report showed factory orders unexpectedly increased.

``We've had a very nice market in the last couple of weeks, and some of it has been dollar-related,'' Gero said. Over the long term, ``crude oil, euro and gold move together.''

In the past two years, gold sold in dollars has moved almost in lockstep with the euro against the dollar, with a correlation coefficient of 0.83. The maximum reading is 1. The coefficient measures to what degree two variables move in unison.

A futures contract is an obligation to sell or buy a commodity at a set price by a specific date.

To contact the reporter on this story: Jennifer Itzenson in New York at jitzenson@bloomberg.net.

Last Updated: August 4, 2005 14:17 EDT