Gold edges higher on Libya unrest concerns
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Gold futures on the COMEX Division of the New York Mercantile Exchange edged higher on Monday, as growing unrest in Libya continued to boost demands for safe-haven investment.
The most active gold contract for April delivery inched up 60 U. S. cents per ounce, or 0.04 percent, to settle at 1,409.9 dollars.
"Traders continue to monitor the chaos in North Africa and the Middle-east,"said Mike Daley, a senior gold analyst with Chicago- based PFGBEST, "Traders and investors alike are concerned that the disruption in Libya's oil supply will send crude oil prices skyrocketing further."
Mike added that higher crude oil prices are inflationary, which have caused many global investors to choose the precious metals as their "safe haven" alternative investment.
The unrest in the Middle East and North Africa as well as the inflationary worries has pushed up the gold prices by 5.9 percent this month. In 2010, gold prices hiked 30 percent and reached a record 1,432.5 dollars an ounce on Dec. 7.
However, Mike also showed his concerns over the current market, as "investors have become very cautious above the 1,400 dollars per ounce level due to uncertainty involving central banks raising rates and that the situation in Libya is reaching its apex."
But in the long run, the market widely believed that the gold prices would continue to get support from the worldwide inflationary concerns.
Silver for May delivery gained 89.7 cents, or 2.7 percent, to 33.82 dollars an ounce. Meanwhile, April platinum delivery gained 5.8 dollars, or 0.32 percent, to 1,809.2 dollars an ounce.
