Gold rose in New York, extending the best monthly gain since April in Forex trading markets, as turmoil in North Africa and the Middle East and concern inflation will accelerate boosted demand for an alternative asset.
The U.S. said it will assist Libyan rebels trying to force Muammar Qaddafi from power, as pro-democracy protests that have swept the Middle East spread to Oman and reignited in Tunisia. The mounting unrest pushed oil prices above $100 a barrel in New York last week for Introducing brokers forex. Inflation in the 17-nation euro region quickened to 2.3 percent in January from 2.2 percent in December, a report showed today.
Gold futures for April delivery added $4.50, or 0.3 percent, to $1,413.80 an ounce at 11:52 a.m. on the Comex in New York, bringing the gain this month to 5.9 percent. The metal for immediate delivery in London was 0.2 percent higher at $1,413.43.
Bullion rose to $1,411 an ounce in the afternoon “fixing” in London, used by some mining companies to sell output, from $1,409.75 at today’s morning fixing for Introducing broker.
Concern about rising inflation and currency debasement drove gold prices up 30 percent last year for a 10th annual gain, reaching a record $1,432.50 an ounce on Dec. 7. Increasing food and commodity prices have contributed to uprisings in the Middle East and North Africa.
U.S. officials met with their overseas counterparts in Geneva today to discuss the fate of Libya, including measures to pressure Qaddafi out of power and build ties with the nation’s opposition leaders. The regional unrest that ousted Tunisian President Zine El Abidine Ben Ali and Egyptian President Hosni Mubarak reached Oman, where protesters clashed with security forces in the province of Sohar.
Egypt banned the export of gold until June 30, Al Arabiya television reported yesterday, without saying where it obtained the information.