Jan. 17 (Bloomberg) -- Gold prices rose to a 25-year high on inflation concern as crude oil prices gained after rebel attacks in Nigeria reduced output.

Investor demand pushed platinum and copper to records, and silver to 21-year highs. Metals have outperformed stocks and bonds, prompting speculators to diversify their investments. Gold rose 18 percent in 2005, while the Standard and Poor's 500 Index of stocks rose 3 percent. U.S. notes and bonds returned 2.8 percent, according to Merrill Lynch & Co.

``There's definitely more buying in gold, obviously on inflationary fears,'' Darren Heathcote, head of trading at N.M. Rothschild and Sons (Australia) Ltd., said from Sydney. ``The funds have continued to buy.''

Gold for immediate delivery rose as much as $2.10, or 0.4 percent, to $564.30 an ounce, the highest since Jan. 21, 1981. The metal traded at $559.20 at 3:10 p.m. Singapore time.

Crude oil prices rose after pipeline sabotage cut output in Nigeria, Africa's biggest oil producer, and on concern over Iran's nuclear program. The U.S. and U.K. are among nations that may seek to refer Iran to the United Nations Security Council, a move that could lead to sanctions. The two exporters make up 7.5 percent of global oil supply.

Speculative funds are buying gold to hedge against ``geopolitical risks,'' Kazuhiko Saito, a commodity strategist at Interes Capital Management in Tokyo, said by phone today.

Hedge Funds

Hedge funds and other large speculators have more than tripled net long positions, or bets prices will rise, on the Comex division of the New York Mercantile Exchange in the last six months, U.S. Commodity Futures Trading Commission data show.

Copper futures in Shanghai rose to a record for the second day on speculation demand from cable and wire makers will outpace supply in China, the biggest consumer of the metal.

The metal has been buoyed by interest from pension and hedge funds. Funds are investing in commodities through indexes, including the Goldman Sachs Commodity Index. That may increase demand for copper futures by an amount equal to 270,000 tons a year in 2006 and 2007, according to Peter Hollands, managing director of Bloomsbury Minerals Economics Ltd. in London.

Gold prices have risen 33 percent in the past year, platinum 22 percent, silver 40 percent and Shanghai copper futures 53 percent.

Prices of gold fell after reaching a 25-year high today as speculators judged the gains overdone and locked in profits.

``It's had such a strong run,'' Mark Pervan, head of resources and mining research at Daiwa Securities SMBC, said by phone from Melbourne. ``There's a lot of short-term money in the market that probably wants to take a profit, like hedge funds.''

Comex

Gold for delivery in February traded at $559.10 an ounce, up 0.4 percent, at 3:23 p.m. Singapore time on the Comex division of the New York Mercantile Exchange. It reached $565.50 an ounce earlier today, the highest since Jan. 22, 1981.

In Tokyo, gold for delivery in December rose 11 yen, or 0.5 percent, to settle at 2,101 yen a gram, or 65,341 yen ($569) an ounce, the highest closing price since Dec. 9.

Platinum for immediate delivery rose as much as $2, or 0.2 percent, to $1,051.50 an ounce. That beat a record of $1,047.50 set March 5, 1980, according to data from Johnson Matthey Plc, the world's largest distributor of platinum-group metals. It traded at $1,041.5 an ounce at 3:26 p.m. Singapore time.

Japanese Investors

Platinum fell as Japanese investors sold to lock in gains, according to Gordon Cheung, director of precious metals at Mitsui Bussan Precious Metals (HK) Ltd.

The metal, used in jewelry and in devices that clean car exhausts, is mined in South Africa and Russia. It couldn't keep its record as ``it's not supported by big volumes. There's no outside interest'' apart from the Japanese, Cheung said.

Metal for delivery in April rose as much as $15.40, or 1.5 percent, to $1,059 an ounce on Comex. The metal traded at $1,044 an ounce at 3:02 p.m. Singapore time.

Silver for immediate delivery rose to its highest in 21 years as investors bought the metal used in jewelry, electronics and photography.

Silver rose in line with gold, said Mitsui's Cheung. The metal has a correlation coefficient of 0.94 with gold. That measures the coincidence of closing daily gains and declines in the past year on a scale of -1, meaning prices move opposite each other, to 1, meaning they move in lockstep.

Metal for immediate delivery rose as much as 5 cents, or 0.5 percent, to $9.31 an ounce, the highest since June 1984. It traded at $9.22 an ounce at 3:30 p.m. Singapore time.

To contact the reporter on this story: Chia-Peck Wong in Singapore at cpwong@bloomberg.net.

Last Updated: January 17, 2006 02:45 EST