Gold jumps 1%, over $1,400 on Mideast violence - The Economic Times

LONDON: Gold prices jumped above $1,400 an ounce on Monday for the first time in nearly seven weeks as violence flared in north Africa and the Middle East, raising interest in the precious metal as a haven from risk.

Bullion has risen 3.5 per cent over six days of gains, its longest winning streak since August, as protests that have unseated leaders in Egypt and Tunisia spread to neighbouring states, threatening the grip of long-entrenched autocratic leaders elsewhere.

Spot gold rose as high as $1,408.20 an ounce and was bid at $1,405.23 an ounce at 1900 GMT, up 1.2 per cent or $16.65 an ounce and within some $25 of an all-time high. Prices have risen from an almost four-month low of $1,300 in late January.

US gold futures for April delivery rose $18.40 an ounce to $1,407.10, with trading volume about one-third the 30-day average due to the Presidents' Day US holiday.

"The unrest and the fear in these countries is increasing," said Bayram Dincer , an analyst at LGT Capital Management in Switzerland. "These uncertainties on the geopolitical risk side are driving the gold market."

"See how easily gold broke $1,390, $1,395, which were strong resistance levels, and now the $1,400 psychological level," he said. "It seems nobody is looking for lower gold prices."

Other safe-haven assets also rose, with bund futures up and the Swiss franc gaining against the dollar and the euro. Brent oil prices meanwhile surged above $105 a barrel for the first time since 2008 as the turmoil hit oil supplies while European shares slipped.

Silver jumped 4.3 per cent to $33.85, hitting its highest since the Hunt Brothers surge 31 years ago and widening the gold ratio -- the number of ounces needed to buy an ounce of gold dropping -- to around 42, a near 13-year low. more ...