Gold Price Continues Increase Following Crisis in Libya

Gold prices increase above U.S. $ 1,430 per ounce on Tuesday, March 8, 2011, following the political crisis in Libya that never ends. Even on Monday, the spot price of gold could reach U.S. $ 1.433.95 and close at U.S. $ 1.430.74 in New York.

On the Comex futures exchange New York Mercantile Exchange, gold for April delivery on Tuesday, down U.S. $ 7.30 to U.S. $ 1,427.20 per ounce. Gold prices had reached a record U.S. $ 1,444.40 per ounce on Monday, when oil prices soared.

The price spike came on the heels of action that forces loyal to the Libyan leader, Muammar Gaddafi, launched a counterattack against the rebels. Some investors worried that this condition will lead to war are sending will affect oil supplies and the mining world.

“I think gold prices will occupy the new price of U.S. $ 1,400 – $ 1,500 per ounce,” said Mihir Dange analyst of economic and financial research institute Arbitrage, as quoted by The Street, Wednesday, March 9, 2011.

Silver prices also rallied in early trading Tuesday, but profit taking as investors price dropped to U.S. $ 35.65 per oz. Throughout the year, silver prices have jumped 16.9 percent this year.