Gold and silver futures were climbing Friday morning as investors pursued protection for their assets and the United Nations Security Council approved force to defend Libyan civilians, Bloomberg reports.
France and the U.K. are two countries looking into methods of intervening in the Libyan crisis after state troops loyal to embattled leader Muammar Gadhafi's obey his calls to blunt threats to his power. Military action might begin within hours on Friday, according to France.
"The volatile situation in the Middle East and North Africa region, which has led the UN Security Council to agree a no-fly zone, is likely to underpin gold and silver on safe-haven demand," according to a report by James Moore, a London-based analyst with TheBullionDesk.com.
Immediately prior to 8:30 a.m. on Friday, gold futures gained 1.30 percent, an $18.30 climb to $1,422.50 per troy ounce. Silver futures were up 3 percent, a $1.027 increase to $35.285 per troy ounce.
"Tensions in the Middle East have boosted safe-haven flows," according to a Friday report by Dan Smith, an analyst at Standard Chartered. "We expect gold to trend higher in the year ahead."
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.