Gold in New York rose for the first time this week on speculation higher energy costs will stoke inflation, boosting the metal's appeal as a hedge against accelerating prices.

Gold reached a 26-year high last month as near-record oil prices sent retail gasoline up more than 30 percent from a year earlier. Oil topped $73 a barrel today, renewing concern that higher costs for manufacturers will trigger increases in consumer products.

``There's heightened chatter about inflationary pressures with crude up more than $1,'' said Frank McGhee, head metals trader at Integrated Brokerage Services LLC in Chicago. ``That's helping gold.''

Gold for August delivery rose $7.90, or 1.4 percent, to $588.90 an ounce on the Comex division of the New York Mercantile Exchange. Prices had fallen 1.2 percent in the past three days.

Gold reached $873 an ounce, the highest ever, in 1980 after oil costs doubled in a year and consumer prices rose 12 percent.

Oil has climbed 20 percent this year partly on concern that Iran may cut exports because of a dispute over its nuclear program.

Iran's top nuclear negotiator, Ali Larijani, dismissed U.S. and European calls to accelerate his country's decision on accepting trade and technology incentives in return for suspending uranium enrichment. Crude oil reached a record $75.35 a barrel on April 21.

`It's the Unexpected'

``It's the unexpected that could happen in the Middle East,'' said Marty McNeill, a trader at R.F. Lafferty Inc. in New York. Investors who've made bets gold prices will fall are ``evening up their positions over the long weekend,'' he said.

U.S. markets will be closed for the Independence Day holiday on July 4.

``People have a fear of something happening over the long weekend,'' said Greg Sweet, a commodity broker at Infinity Brokerage Services Inc. in Chicago. ``People value gold as a safe haven.''

Prices may reach $700 to $750 an ounce by the end of this year, said Jochen Hitzfeld, a strategist at HVB in Munich.

``We are very positive on gold,'' Hitzfeld said. ``When you take the average price of gold in the first quarter of 1980 and adjust for inflation, we should be able to reach $1,300.''

Silver futures for September delivery rose 17.8 cents, or 1.7 percent, to $10.42 an ounce. Prices have surged 47 percent from a year ago. The metal reached a 25-year high of $15.20 on April 5.