Gold nears $1,400/oz, at 7-week high

Precious metals once again proved their mettle in early trading today, with prices of gold, silver, palladium and platinum all firming up on renewed tensions across the region and solid global demand from recovering economies.

Spot gold rose to a seven-week high of $1,398 an ounce on Monday and the yellow metal’s safe-haven status once again pushed the prices up as political tensions in the Middle East and North Africa gained momentum.

Retail gold prices for 24-carat gold in the UAE were up by almost Dh15/oz this morning, with a 1oz gold bar retailing at Dh4,742 compared with Dh4,727 last evening.

Gold gained 3 per cent last week and is seen further up by global traders as investors take a flight to safety. Spot gold made its all-time high of $1,423.57 an ounce early last month, but then lost more than $100 an ounce to $1,318.40 an ounce on better-than-expected economic data from the US and some other western economies, before rising once again to the current levels.

Silver, on the other hand, has risen to $33.18, a 31-year-high, and analysts believe that industrial demand emanating from recovering economies across the world may keep the prices buoyed up at least for a while.

Meanwhile, palladium hit a 10-year-high with prices above $855.50/oz, and platinum rose to $1,842.25/oz as demand for precious metals remains robust.

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