Investors flocked towards gold and silver today, pushing the prices higher as Europe’s financial concerns and violent uprisings of the Middle East and North Africa overshadowed other international investment news, including the raise of interest rates in China in an attempt to curb inflation. As global concerns such as Europe’s uncertainties and Libya’s halted oil production ensue, analysts predict that the prices of gold and silver will continue to increase, serving its reputation as a stable asset.
“Gold and silver prices rose Tuesday as investors sought out stable assets while monitoring Europe’s debt crisis and uprisings in the Middle East and North Africa.
“Gold for June delivery added $19.50 Tuesday to settle at $1,452.50 an ounce. Silver gained 68.9 cents to settle at $39.183 an ounce.
“Uncertainty about what may be next in Europe and in oil-rich countries like Libya is prompting investors to buy precious metals, which have the reputation of being relatively stable. Analysts say prices of both metals could continue to increase until there is more clarity about global events.
“China raised key interest rates for the fourth time since October to try to curb inflation. That news was overshadowed by investor concerns about financial problems in Portugal, Ireland, Greece and Spain.
In addition, worries lingered that violent uprisings in Libya and other neighboring countries could disrupt the flow of oil from the region.
“’All those fundamental factors persisting really took over and really drove market prices to new highs,’ said Dave Meger, vice president of metals trading at Vision Financial Markets.”