Gold futures notched all-time record prices on Tuesday afternoon while silver futures also increased, driven largely by civil uprising in Libya aiming to oust its leader, Bloomberg reports.
Gold futures struck $1,435.60 per troy ounce and shattered the top value set on December 7 when gold futures were $1,432.50 per troy ounce.
"The continued instability overseas has brought the 'fear' trade back to gold," Adam Klopfenstein, a senior strategist at Lind-Waldock in Chicago, told Bloomberg. "Gold and silver are the big beneficiaries of the fear and uncertainty. Investors want to buy first and ask questions later."
Driven to record prices last year primarily because of the world's struggle with the recession, gold futures rose also because of euro zone banks teetering on the precipice of bankruptcy. Greek and Irish banks were granted bailouts by the European Union as Portuguese, Spanish and Italian banks reportedly were waiting in the wings.
In Tunisia this past January, anti-government demonstrators ousted the long-time leader. After 18 days of protests, Egyptian protestors succeeded at ousting their leader. Protests in Libya began shortly thereafter, and they are continuing this month.
Shortly before 5 p.m. on Tuesday, gold futures increased 1.76 percent, a $24.80 gain to $1,434.70 per troy ounce. Silver futures increased 2.51 percent, an $0.85 gain to $34.67 per troy ounce.
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