As tensions mount in Libya and other mid-east nations, gold prices broke through $1,400 an ounce. Spot gold was bid at $1,404.29 an ounce at 1221 GMT (7:21 a.m. EST), against $1,399.20 late in New York on Tuesday. U.S. gold futures for April delivery rose $3.70 an ounce to $1,404.80.
“Gold certainly has seen a swift spike over the last two weeks on the back of Middle East tensions, especially after riots broke out in Libya,” said Pradeep Unni, senior analyst at Richcomm Global Services in Dubai.
“What is, however, surprising is the steady decline in investment demand despite this uncertainty,” he added. “This hints that the gains over the last few weeks may succumb to profit taking once the issues subside.”
Source: Reuters
In case you havent noticed the situation in the middle east has also driven the spot price of silver up as well as gold.
The gold rally will burn out soon in my opinion as the price of oil and gold has gone up simply due to panic about libya sabotaging the oil rigs.