Gold stays near yesterday’s record on Middle East unrest (Reuters) (02-03-2011)

LONDON – Gold was just below previous high in Europe on Wednesday, as the threat that violence in the Middle East and North Africa will spread supported interest in the metal as a haven from risk.

Spot gold was bid at $1,430.30 an ounce at 1031 GMT against $1,433.70 late in New York on Tuesday, having peaked that day at an all-time high of $1,434.65.

U.S. gold futures for April delivery rose 10 cents to $1,431.30.

Gold rose 6 percent in February, its biggest one-month climb since August, largely on the back of unrest that unseated leaders in Tunisia and Egypt before spreading to Libya, Bahrain, Yemen, Oman and elsewhere.

Gold prices rallied to a record $1,435.65 an ounce late on Tuesday, while silver prices reached their strongest in 31 years, a high they surpassed early on Wednesday.

Elsewhere silver rose to a peak of $34.74 an ounce, its strongest level since early 1980, before edging back to $34.46 an ounce against $34.66.

Holdings in the world's largest silver exchange-traded fund, the iShares Silver Trust, rose to 10,693.68 tons on March 1, their highest since January 14.

Platinum was at $1,831.50 an ounce against $1,838.49, while palladium was at $811.97 versus $814.47.

According to analysts, rising oil prices are set to support gold, if they look likely to curb global growth.

Source: Reuters