Skip to main content
The Globe and Mail
Support Quality Journalism
The Globe and Mail
First Access to Latest
Investment News
Collection of curated
e-books and guides
Inform your decisions via
Globe Investor Tools
Just$1.99
per week
for first 24 weeks

Enjoy unlimited digital access
Enjoy Unlimited Digital Access
Get full access to globeandmail.com
Just $1.99 per week for the first 24 weeks
Just $1.99 per week for the first 24 weeks
var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(select.open)}function setPanelState(o){dom.root.classList[o?"add":"remove"](select.open),dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){window.requestAnimationFrame(function() {var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))});}pencilInit(".js-sub-pencil",!1); // via darwin-bg var slideIndex = 0; carousel(); function carousel() { var i; var x = document.getElementsByClassName("subs_valueprop"); for (i = 0; i < x.length; i++) { x[i].style.display = "none"; } slideIndex++; if (slideIndex> x.length) { slideIndex = 1; } x[slideIndex - 1].style.display = "block"; setTimeout(carousel, 2500); }

Toronto Police warn jewellers to look out for kangaroo-stamped gold bars

Toronto Police handout photo

Gold rose to a record high for a second straight day Wednesday, breaching $1,440 (U.S.) an ounce as political unrest in Libya and surging oil prices prompted investors to pile in.

Unrest across the Middle East and North Africa, which unseated leaders in Tunisia and Egypt before spreading to Libya, Bahrain, Yemen, Oman and Iran, fueled safe-haven buying on fears that tensions could flare across the entire region.

"You have political problems all over the world, a Federal Reserve bank that still erred on the side of easing rather than tightening, rising commodities prices in general, and growing disdain for fiat currencies generally," said Dennis Gartman, author of the Gartman Letter, an daily investment newsletter.

Story continues below advertisement

"It will be illogical for gold not to be going higher," he said.

Two U.S. warships were passing through the Suez Canal on Wednesday, heading for the waters off Libya to pressure that country's ruler, Muammar Gaddafi, to step down. Gaddafi launched a land and air offensive to retake territory from rebels in Libya's eastern region.

At a meeting of Arab foreign ministers in Cairo on Wednesday, Iraqi Foreign Minister Hoshiyar Zebari said the Libya crisis is an internal Arab affair and foreign powers should refrain from any intervention.

RECORD TERRITORY

Spot gold rose 0.4 per cent to $1,439.19 an ounce by 12:00 p.m. ET, after peaking at an all-time high of $1,440.10. The metal fixed at $1,435.50 an ounce in London.

U.S. gold futures for April delivery rose $7.90 to $1,439.10.

Gold is building on a 6 per cent rise in February, its biggest one-month climb since August.

Story continues below advertisement

World stocks declined as unrest in the Middle East and North Africa drove up oil prices and pushed investors into safer assets.

Rising oil prices will support gold's status as an inflation hedge, analysts said, if they appear to curb global growth. "They could very well impact (growth in) Europe, the United States as well, and indeed China," said VM Group analyst Carl Firman.

"That will give rise to uncertainty, it will lower demand predictions for, for instance, copper, and where it knocks industrial metals and equities, gold will probably benefit," he said.

U.S. crude futures rose above $101 a barrel as escalating violence in Libya threatened the OPEC nation's oil infrastructure and markets braced for a potentially prolonged disruption.

Federal Reserve Chairman Ben Bernanke said Tuesday the surge in oil prices is unlikely to hurt the U.S. economy, boosting gold as he offered no hint that the U.S. central bank was considering winding down its loose monetary policy.

RISK APPETITE WANES

Story continues below advertisement

Violence in the region cooled appetite for higher-risk assets such as stocks and boosted so-called safe havens like German government bonds, the Swiss franc and gold.

Silver rose to a peak of $34.96 an ounce, its strongest level since early 1980. It later rose 0.4 per cent to $34.79 an ounce.

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

The trust reported a slight recovery in its holdings last month after they posted their biggest ever one-month fall in January.

Platinum gained 0.9 per cent to $1,855.49 an ounce and palladium climbed 0.4 per cent to $817.47.

Report an error
Tickers mentioned in this story
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies