Gold is progressively approaching its record high from late last year as a result of unrest in Libya and concerns about inflation, Bloomberg reports.
Just after 9 a.m. on Thursday, gold futures were up 0.14 percent, a $2 rise to $1,416 per troy ounce. The precious metal is less than 1 percentage point from exceeding the record price for gold, $1,432.50 per troy ounce, which was set on December 7, 2010.
"Gold is poised to challenge December's all-time high," according to a report by James Moore, an analyst at TheBullionDesk.com in London.
Analysts credit wobbly euro zone banks with boosting gold prices last year. This year, many point to ongoing anti-government protests in the Middle East, which has resulted in the leaders of Tunisia and Egypt being forced from power.
The unrest in Libya is fueling speculation that as fuel prices rise, so too will inflation, which analysts also link to the increasing demand for the yellow metal.
"The mix of safe-haven demand, inflation concerns and strong retail demand continues to support higher prices," Moore's report said.
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