After a tight rally on Wednesday gold prices hit a record high of USD1447.50 during the U.S. session as demand for the safe haven investment is boosted by three events, namely the Libyan crisis, Portugal and Ireland debt crisis and the lingering Japan nuclear disaster.
Gold prices spiked after reports of intensified fighting in Libya as French military planes bombed pro- Gaddafi targets. From the New York open of USD1439.52 Spot Gold jumped over 80 pips to hit the all time high. Meanwhile Gold Futures for April delivery peaked at USD1448.60 per ounce.
Soon after peaking, Spot Gold prices retreated abruptly and plummeted almost 238 pips to touch USD1423.80 where it is currently trading at time 19:30 GMT.