UNITED KINGDOM, March 1, 2011: The price of gold has hit a record high as investors worry about the political turmoil in Libya and spreading tensions across the Middle East. The price on the London Bullion Market jumped more than $14 to $1,434.50 an ounce. Gold is traditionally seen as a haven for investors in times of uncertainty.
Unrest across the Middle East and North Africa fueled a 6% rise in gold prices during February. Analysts said that the political problems were pushing oil prices higher and fanning concerns about inflation and slower global economic growth. ‘What gold needed was a catalyst, and it found it in the form of tensions that are surfacing in the Middle East and rising oil prices,’ said Mark Luschini from the brokerage Janney Montgomery Scott.