MercoPress. South Atlantic News Agency

Gold above 1.400 USD and silver at 30 year record as investors take refuge

A perfect mix for precious metals: Middle East jitters and inflation

Gold climbed above 1,400 US dollars an ounce to the highest price in almost seven weeks in London as unrest in the Middle East and North Africa spreads. Silver reached a 30-year high and palladium advanced.

“The mix of Middle Eastern jitters and inflation concerns continues to create a favourable price environment for the precious metals, particularly gold and silver” James Moore, an analyst at TheBullionDesk.com in London, said in a report.

Immediate-delivery bullion added as much as 14.22 USD, or 1% to 1,403.75 USD an ounce, the highest price since January 4. Prices gained for a sixth day, the longest streak since August. The metal for April delivery was 1% higher at 1,402.20 USD on the Comex in New York.

Silver for immediate delivery gained as much as 2.7% to 33.5175 USD an ounce, the highest price since March 1980.

Gold reached a record 1,431.25 USD an ounce on Dec. 7. Concern about rising inflation and currency debasement drove prices up 30% last year for a 10th annual gain. Rising food and commodity prices have contributed to uprisings in the Middle East and North Africa.

Silver advanced to its most expensive level versus gold in 13 years. An ounce of gold bought as little as 41.76 ounces of silver Monday, the lowest amount since February 1998. Silver has more than doubled in the past year.

Palladium for immediate delivery in London rose 0.6% to 856 USD an ounce after reaching 861.50, the highest level since February 2001. Platinum was 0.6% higher at 1,845.25 USD an ounce.