Gold extends rally
Xinhua, March 3, 2011 （Copy from china.org.cn）
Gold futures on the COMEX Division of the New York Mercantile Exchange further hiked on Tuesday, approaching its historical record made in December 2010, as unrest in the Middle East and North Africa continued to boost safe-haven demands.
The most active gold contract for April delivery hiked 21.3 U.S. dollars per ounce, or 1.5 percent, to settle at 1,431.2 dollars.
Market traders noted that escalation of violence in Libya as well as spreading unrest in the Middle East has brought new buyers and spurring gold to new territory.
Mike Daley, a senior gold analyst with Chicago-based PFGBEST, said that as long as these tensions remain the precious metals should retain support. After Tuesday's hike, Gold price has come closer to historical record of 1,432.5 dollars per ouce made on Dec. 7.
Besides, Gold also gained support after U.S. Federal Reserve Chairman Ben Bernanke told Congress that the increase in inflation from rising commodities prices will be modest and temporary.
Market analysts said inflation-based gold trades are also bullish, as Libya's crude oil disruption has pushed the energy price higher and the world's grain prices also surged on tightening supply expectation.
Silver for May delivery gained 60.7 cents, or 1.8 percent, to 34.427 dollars an ounce. Meanwhile, April platinum delivery also hiked 35.9 dollars, or two percent, to 1,845.1 dollars
