Wednesday, February 23, 2011

Gold remains steady as geopolitical tension persists, silver rising higher

Investors are closely watching the price of gold on Wednesday after it rose in recent days to within 3 percent of a record.

The unrest in the Middle East, particularly in Libya, the fourth-largest oil producer in Africa, has unsettled markets and pushed up oil prices.

Gold bullion for immediate delivery is trading at around $1,398 per ounce. Gold rose for a tenth straight year in 2010, hitting an all-time high of $1,431.25 on December 7 as investors sought protection against fears of rising inflation.

Analysts believe the price of gold is unlikely to fall as long as tension persists in the Middle East.

Jewellery manufacturers have been redesigning their products in the past year due to the sharp rise in gold prices. There has been a noticeable move to silver, but the white metal has also risen sharply and has reached a 31-year peak.

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