The price of gold , rolls to the peaks of $ 1,350/oz on Thursday as safe haven demand returned and ETF buying increased. Tensions in Egypt, which has been simmering for some time, boiled over this week as demonstrators for and against President Mubarak clashed in major cities throughout the country. Concerns over supply disruptions pushed the oil price $ 103 per barrel, its highest in nearly 2 years.
Gold rose from the beginning on Friday last week as safe haven buying back on the back of the turmoil in Egypt. On Thursday evening gold rose to $ 1,353, its highest in over 2 weeks which purchase orders were triggered over $ 1,340 and ETF volumes sharply increased since. Carlos Perez-Santalla NAMED EXAMPLE_PMC future said: “it is clearly driven by buy-stops the activity happened. I think it’s ETF related. ”
A little overshadowed this month of unrest in the Middle East was the European central bank announcement. When ECB President Jean-Claude Trichet announced, as expected “prices on hold”, he also hinted that they would refrain from raising interest rates for slightly longer than previously calculated. This environment with low interest rates benefits usually gold and views on the timing of interest rate rises have contributed to the rise and fall in the price of gold.
Silver became, along with the gold on Friday at $ 28.80/oz and gold-silver ratio was back down at 47.
Platinum was in $ 1,837/oz on Friday after falling below $ 1 800 earlier in the week. Palladium was down slightly at $ 810/oz, having spent a rough week in a range between $ 798-$ 825.
All data and quotes obtained from Reuters.