Libya unrest keeps gold above $1,400
Sat 4:01 pm by Sergei Balashov

Gold was in demand this week amid the continuing unrest in the
greater Middle East, which boosted demand for safe harbour assets.
The
yellow metal peaked at US$1,418/oz when violence in Libya intensified
and it was reported that the country’s long time ruler Muammar Gaddafi
ordered his security forces to sabotage oil facilities, driving oil
prices to two year highs.
Saudi Arabia has to step in, indicating
it was prepared to raise production to make up for any supply
shortfalls caused by the situation in Libya.
The news brought
some relief to the markets, however, the crisis appears to be far from
over and traders fear that the situation could turn to the worse. At the
end of the week, a former minister of the Libyan government told
Al-Jazeera that Gaddafi had biological and chemical weapons and could
use them against protesters without much hesitation in a desperate bid
to stay in power.
Gold, which is seen as a safe haven asset and
an inflation hedge, remains under pressure from expectations of a price
decline once the situation in the Middle East and North African calms
down.
Gold last traded at US$1,409/oz, up from US$1,389/oz a week ago.
Silver advanced from US$32.66/oz to US$33.38/oz, while platinum declined from US$1,832/oz to US$1,805/oz.
Mining companies were headed in different directions this week.
Shares in African Barrick Gold (LON:ABG) surged from 571 pence to 590 pence, while fellow gold producer Randgold Resources (LON:RRS) declined from 5,035 pence to 5,020 pence.
Silver miner Fresnillo (LON:FRES) rose from 1,507 pence to 1,576 pence and platinum miner Lonmin (LON:LMI) fell from 1,853 pence to 1,829 pence. |