Nicholas Larkin and Kim Kyoungwha
Feb 21, 2011
Gold climbed to the highest price in almost seven weeks in London as unrest in the Middle East and concern inflation will quicken boosted demand for an alternative asset. Silver reached a 30-year high and palladium advanced.
Libyan leader Muammar Qaddafi’s son Saif al-Islam Qaddafi called on protesters to engage in dialogue or face a civil war that risks “hundreds of thousands of dead.” In the latest move to curb inflation, China’s central bank said Feb. 18 that it would raise reserve requirements for lenders from Feb. 24 after boosting interest rates earlier this month.
“The mix of Middle Eastern jitters and inflation concerns continues to create a favorable price environment for the precious metals, particularly gold and silver,” James Moore, an analyst at TheBullionDesk.com in London, said in a report.
Immediate-delivery bullion added as much as $9.22, or 0.7 percent, to $1,398.75 an ounce, the highest price since Jan. 4, and was at $1,398.22 at 9:46 a.m. in London. Prices are up for a sixth day, the longest winning streak since August. The metal for April delivery was 0.7 percent higher at $1,398.20 on the Comex in New York.