Gold Price Rises Because Of Fears Of Libya Turmoil As Silver Prices Hit 31-Month High

Gold futures increased for the third time in four sessions as the discord in Libya spurred demand for an investment haven. Silver expanded a rally to a 31-year high. Now is a great time to buy silver and buy gold as a safe haven protection for your assets.

Italy rejected a claimed cease-fire proposal by Muammar Gaddafi and said it's recognizing Libya's opposition as the authentic government. The European Central Bank might increase interest rates this week to dampen inflation. Gold futures rose to a record of $1448.60 an ounce on March 24 amid the fighting in Libya, the Japanese nuclear disaster and European-debt worries.

Silver futures for May delivery improved 76.2 US cents, or 2 per cent, to $38.494 an ounce. Earlier, the cost reached $38.62, the highest for a most-active contract students finance because February 1980. The metal has much more than doubled within the past 12 months.

A record low in US house sales was also helping gold prices in February, which fanned speculation that the Federal Reserve may extend its $600 billion bond buy program. Worries that low cost cash could flood the economy add to gold's appeal as an inflation hedge.

The metal struck a record high of $1,440.40 an ounce on March 7, supported by its status as a secure haven from risk and inflation as unrest within the Middle East has spurred oil costs greater. Japan's nuclear situation has also supported costs.

The metal kept steady last Thursday, March 17, as it drew support from the spreading turmoil within the Middle East and talk of extended loosened U.S. monetary policy following lackluster house sales information.

Ongoing fighting in Libya, where western forces have still did not dislodge Muammar Gaddafi's armor, calls for the ouster of Yemen's president and Palestinian rocket attacks on Israel that have increased geo-political uncertainties within the region.