Gold prices rose to near record levels on the New York Spot Market on Tuesday as unrest in Libya and concerns about inflation globally spurred demand for the metal as a “safe haven” asset. As of 9:45 AM Pacific Time, gold prices were up over $18 per ounce to $1,431. Silver prices also advanced to their highest level since 1980.
“The continued violence in the Middle East is bringing in new buyers and spurring gold to new territory,” said Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago. Gold and silver “are set for further gains as ongoing Middle East and North Africa turmoil continues to draw strong investment and flight-to-safety demand,” James Moore, an analyst at TheBullionDesk.com in London, said in a report.
Global inflationary trends are also stoking demand for precious metals. “The inflation story for gold is everywhere,” said George Gero, vice president with RBC Capital Markets Global Futures. Preliminary data Tuesday showed that the euro zone’s inflation rate rose to a 28-month high of 2.4% in February. Meanwhile, two surveys of Chinese manufacturers showed that pricing pressures intensified.
Both gold and silver are considered a storehouse of value in times of rising consumer and producer prices
Source: Goldline International
The Currency Newshound 