Wednesday, March 2, 2011

Gold at all time high, Silver hits 31 year high on the back of Mid East unrest and rising Inflation



From The Sydney Morning Herald:

The price of gold shot up to a record high overnight as unrest in the Middle East and North Africa sent oil prices higher and stoked fears about rising inflation.

Spot prices for the precious metal touched $US1,435.60 an ounce in New York, building on a 6 per cent advance in February.

Investors fear political volatility in the Middle East may lift crude oil costs high enough to damage a fragile global economic recovery as inflation spreads and growth slow.

“The continued violence in the Middle East is bringing in new buyers and spurring gold to new territory,” Frank McGhee, the head dealer at Integrated Brokerage Services in Chicago told Bloomberg. “The rush to economic health is fading. Crude above $US100 is an energy tax that will force governments to put more money into the system. Our old fear of stagflation returns.”

Markets are worried Saudi Arabia, the world's biggest oil producer, may be among the next nations to face a public uprising of the like that toppled leaders in Tunisia and Egypt and pushed Libya's leadership to the brink, said Bell Direct equities analyst Julia Lee.

“Gold was a big winner overnight,” Ms Lee said. “There has been a bit of panic over the Saudi market.”.....read on

No comments:

Post a Comment