Gold futures jump on escalating violence Bahrain, Libya

Gold futures climbed on Thursday in trading as political and social instability in the Middle East and North Africa boosted the metal's allure as a haven asset. Gold futures climbed on Thursday in trading as political and social instability in the Middle East and North Africa boosted the metal's allure as a haven asset. 

In Bahrain, a state-mandated curfew was reduced, but there are increasing reports coming out of the country of a government takeover of hospitals and of policemen firing on peaceful demonstrations. Moreover, in Libya the violence escalated as the country's autocratic ruler Muammar Gaddafi told Benghazi residents that forces loyal to him were "coming tonight" and warned that 'there won't be any mercy." In Bahrain, a state-mandated curfew was reduced, but there are increasing reports coming out of the country of a government takeover of hospitals and of policemen firing on peaceful demonstrations. Moreover, in Libya the violence escalated as the country's autocratic ruler Muammar Gaddafi told Benghazi residents that forces loyal to him were "coming tonight" and warned that 'there won't be any mercy." 

The tumult in Libya and Bahrain drove gold higher on Thursday, said Integrated Brokerage Services head dealer Frank McGhee. "You have the bargain hunters coming in as the Middle East is going up in flames," McGhee told Bloomberg.The tumult in Libya and Bahrain drove gold higher on Thursday, said Integrated Brokerage Services head dealer Frank McGhee. "You have the bargain hunters coming in as the Middle East is going up in flames," McGhee told Bloomberg.

On the Comex in New York on Thursday, gold futures for April delivery climbed 0.6 percent, or $8.10, to settle at $1,404.20 per troy ounce. On March 7, the metal reached an all-time high of $1,445.70 per troy ounce as violent uprisings raged in the Middle East and North Africa. On the Comex in New York on Thursday, gold futures for April delivery climbed 0.6 percent, or $8.10, to settle at $1,404.20 per troy ounce. On March 7, the metal reached an all-time high of $1,445.70 per troy ounce as violent uprisings raged in the Middle East and North Africa.