Libyan forces attacking civilians, the sovereign debt crisis and a risky nuclear situation in Japan have investors eyeing asset havens.
"There is just too much uncertainty at the moment and gold should hold near recent highs," according to a report by Andrey Kryuchenkov, an analyst at VTB Capital in London. "Geopolitical concerns in addition to growing uncertainty over Portugal’s debt crisis supported bullion."
Shortly after 7:30 a.m. on Friday, gold futures were up 0.16 percent, a $2.30 increase to $1,437.20 per troy ounce. On March 7, gold futures set a record high of $1,444.50 per troy ounce and on Thursday, the precious metal topped out at $1,447.82 per troy ounce before dipping as the afternoon ensued.
"Throw ongoing problems within the Middle East and North Africa into the mix, plus an escalating oil price, and further debt problems in Europe, and you have the perfect scenario for further strong gold prices," MineLife founding director Gavin Wendt told the news service.
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.
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 trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.