After 9:30 a.m. on Wednesday, the precious metal established a new record high by rising 0.39 percent to gain $5.60 and notch $1,436.80 per troy ounce. Silver futures were up 1.16 percent, a $0.398 increase to $34.825 per troy ounce.
"Given the continuing strong fundamentals and the concerns of geopolitical instability spreading to Saudi Arabia and other autocratic oil producing nations, gold and silver look set to challenge $1,500 an ounce and $40 an ounce in the coming weeks," states analysts' email from Goldcore in Dublin.
Muammar Gadhafi, the embattled 42-year ruler of Libya, is violently resisting calls for his ouster while the U.S. and European nations are planning to set up a no-fly zone over the country. Gadhafi has dispatched loyal forces to retain power over major cities in the east of the North African nation that have fallen under rebels' rule. Analysts, eyeing the likelihood of protests spreading to other nations, are expecting precious metal futures to resume ticking up.
"The tensions in the Middle East and North Africa are supportive and rising inflation is, of course, another bullish factor," Dan Smith, an analyst at Standard Chartered in London, told Bloomberg.
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