old in Asia climbed to the highest since Jan. 3 on speculation that energy costs will remain high enough to spur demand for bullion as a hedge against inflation.

Gold usually moves in the same direction as oil, which rose for the second day today since trading under $50 a barrel on Jan. 18. Oil prices still have more than doubled from five years ago. Gold reached a 26-year high in May as oil rose to a record in July.

``Gold's strength is mainly related to the oil market,'' said Chris Kwon, broker at HanMag Refco Futures Corp. in Seoul.

Gold for immediate delivery rose as much as $1.20, or 0.2 percent, to $636.60 an ounce. It traded at $635.80 at 10:38 a.m. Mumbai time.

Some investors buy gold when energy costs climb. Gold futures reached a record $873 an ounce in January 1980 after oil costs doubled in a year, sparking a surge in the inflation rate.