Demand for the precious metal was spurred by investors seeking refuge in the safe haven investment during times of geopolitical uncertainty. News over the weekend reported an intervention in Libya by the U.S. and its allies implementing air attacks on Colonel Gadhafi’s loyal forces. As tension intensified in the region, gold prices firmed up, bolstered by the nuclear disaster in Japan. Despite progress of avoiding a nuclear meltdown in Japan, markets were only slightly calmed as uncertainty remains over the long-term impact to one of the world’s largest economies and how soon it can recover from the catastrophe.
Gold has been consistently rising in the last four months, climbing almost 480 pips since March 16th to touch $1434.63 an ounce for the Spot rate. Gold futures for April delivery closed at $1,426.40, up 0.7% an ounce.