Gold rose in New York on speculation higher energy costs this summer will boost demand for the metal as a hedge against inflation.

Gold and oil have moved mostly in lockstep this year, climbing 22 percent. The average U.S. pump price for regular gasoline is 31 percent higher than a year ago and natural gas surged 21 percent in the past week as heat waves across the U.S. spurred demand. Some investors buy gold as an inflation hedge when the cost of energy increases.

``Rising energy prices could help push the gold market higher,'' said Mike Sander, a commodity broker at Altavest Worldwide Trading Inc. in Mission Viejo, California. ``Gold is still in an upward trend.''

Gold futures for December delivery, the most-actively traded contract, rose $4, or 0.6 percent, to $634.70 an ounce on the Comex division of the New York Mercantile Exchange. A futures contract is an obligation to buy or sell a commodity at a set price for delivery by a specific date.

Some traders look at oil prices to gauge demand for gold. The metal reached $873 an ounce in January 1980, the highest ever, after oil doubled in a year, spurring 12 percent inflation.

Gold is still cheaper than oil, some analysts said. Dennis Gartman, gold trader, economist and editor of the Suffolk, Virginia-based Gartman Letter, recommends being long three units of gold and short three units of oil.

It now takes about eight barrels of oil to buy an ounce of gold, compared with the 1970s, when it took more than 20 barrels.

Mideast Violence

Gold prices may remain above $600 because of fighting between Israel and Hezbollah in Lebanon, some traders said. Investors sometimes buy gold as a haven asset during times of political unrest.

Gold climbed to $677.50 an ounce on July 17, a two-month high, as the conflict escalated. A summit in Rome ended today without an immediate cease-fire to the conflict.

``Gold will not go lower until we see some resolution of the situation in the Middle East,'' said Leonard Kaplan, president of Prospector Asset Management in Evanston, Illinois.

Fighting in southern Lebanon between Israel and Hezbollah, a terrorist group backed by Iran and Syria, entered its third week. A UN resolution calls for the disarmament of Hezbollah and for the Lebanese army to take over the area. Hezbollah's capture of two Israeli soldiers in a cross-border attack July 12 sparked the conflict.

Weaker Dollar

A weaker U.S. dollar also helped boost gold prices.

Gold generally moves in the opposite direction of the dollar. The dollar index, down 5 percent for the year, fell today after a policy maker at the Bank of Japan said the central bank may raise interest rates a second time this year, narrowing the gap in rates between the two currencies.

``The dollar is a little weaker and that may boost gold's prospects,'' Kaplan said.

Participation in the futures market was lower today as the August futures contract expires, analysts said.