Gold extends rally amid concerns over escalating unrest in Libya

March 8, 2011 12:17 pm 

CHICAGO, March 8 — Gold futures on the COMEX Division of the New York Mercantile Exchange further hiked on Monday, as escalating unrest in Libya continued to propel hike in oil prices, which boosted demand for the metal as both safe-haven investment and a hedge against inflation.

The most active gold contract for April delivery hiked 5.9 U.S. dollars per ounce, or 0.4 percent, to settle at 1,434.5 dollars.

Market analysts noted that the gold and silver markets are reaping the benefits of the Libyan chaos and the rising price of crude oil as a result.

"Today's gold covered a 17.4 range and once again notched new all-time high of 1,445.7 dollars," Mike Daley, a senior metal analyst with PFGBEST, said, "the loss of Libyan crude oil supply has investors flocking to the precious metals as a safe haven as well as a hedge against inflation."

Crude oil Monday rose to a 29-month high of 105.44 dollars in New York on concern that turmoil will spread to Middle East producers.

A trader noted that the gold market is eyeing oil on concern that the unrest will spill over to Saudi Arabia, and "gold is the place where people are parking money."

Silver for May delivery climbed 53.8 dollar, or 1.5 percent, to 35.865 dollars an ounce. However, April platinum delivery lost 17. 5 dollars, or 0.95 percent, to 1,820.4 dollars an ounce. (PNA/Xinhua)

LDV/ebp

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