Gold‎ > ‎Gold in February 2011‎ > ‎

Gold May Rise, Extending 4th Weekly Advance on Unrest in Libya

Gold May Rise, Extending 4th Weekly Advance on Unrest in Libya 
Feb. 25 (Bloomberg) -- Gold may rise in London, extending the fourth consecutive weekly advance, as unrest in Libya spurs demand for the metal as an alternative investment.

Gold is up 1 percent this week, heading for the longest weekly streak since October. Libyan leader Muammar Qaddafi reinforced his defense of the capital of Tripoli with tanks as opponents consolidated control of the country’s oil-rich east.

“As protests in Libya intensify, we expect gold and silver to be underpinned by flight-to-safety demand,” James Moore, an analyst at TheBullionDesk.com in London, said today in a report.

Immediate-delivery bullion added 25 cents to $1,403.13 an ounce by 1:11 p.m. in London, bringing the gain this month to 5.3 percent, the most since August. Gold for April delivery dropped $12.60, or 0.9 percent, to $1,403.20 on the Comex in New York.

Bullion fell to $1,405 an ounce in the morning “fixing” in London, used by some mining companies to sell output, from $1,411.50 at yesterday’s afternoon fixing. Sixteen of 20 traders, investors and analysts surveyed by Bloomberg, or 80 percent, said the metal will rise next week.

Gold held in exchange-traded products fell 5.29 metric tons yesterday to 2,010.1 tons, the lowest level since June 4, data compiled by Bloomberg from 10 providers show. Holdings reached a record 2,114.6 tons in December. Silver ETP assets advanced 26.21 tons to 14,739.66 tons, the highest level since Jan. 20, data from four providers show.

Silver for immediate delivery gained 1.6 percent to $32.6525 an ounce. It climbed on Feb. 22 to $34.3187, the highest price since March 1980, the year the metal reached a record $50.35 in New York.

Palladium rose 1.2 percent to $784.13 an ounce. It touched a 10-year high of $862.25 on Feb. 21. Platinum was 0.5 percent higher at $1,790.25 an ounce.

--Editors: Dan Weeks, Stuart Wallace.

To contact the reporter on this story: Nicholas Larkin in London at nlarkin1@bloomberg.net

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net.
Comments