Gold up on Libyan violence, high energy prices

The bitter standoff in Libya between rebel forces and the army intensified Wednesday, sending gold up as investors seek out the yellow metal as a hedge against economic and political instability. The bitter standoff in Libya between rebel forces and the army intensified Wednesday, sending gold up as investors seek out the yellow metal as a hedge against economic and political instability. 

Violence in the war torn North African country escalated Wednesday as forces loyal to the country's autocratic ruler, Muammar Gadhafi, fought back against rebel fighters in the western part of the country; they then counterattacked with brutal airstrikes and artillery fire on Ras Lanuf, a strategic refinery outpost that rebels have held for the past few days, the New York Times reports.Violence in the war torn North African country escalated Wednesday as forces loyal to the country's autocratic ruler, Muammar Gadhafi, fought back against rebel fighters in the western part of the country; they then counterattacked with brutal airstrikes and artillery fire on Ras Lanuf, a strategic refinery outpost that rebels have held for the past few days, the New York Times reports.

Crude oil futures jumped 0.9 percent on the news before falling slightly to end the day. According to The Wall Street Journal, tumult in the country has decreased oil production by about 1 million barrels a day; though Saudi Arabia and other OPEC nations have pledged to increase output, investors are fearful that unrest could spread to other Middle Eastern and North African countries.Crude oil futures jumped 0.9 percent on the news before falling slightly to end the day. According to The Wall Street Journal, tumult in the country has decreased oil production by about 1 million barrels a day; though Saudi Arabia and other OPEC nations have pledged to increase output, investors are fearful that unrest could spread to other Middle Eastern and North African countries.

Gold prices are rising on fears of inflation and as social and political unrest spreads throughout the Middle East, said Adam Klopfenstein, a senior market strategist at Lind-Waldock. "The sentiment is just positive for gold and silver," he told Bloomberg. "People want to have that fear premium. There's a flight-to-quality for gold and fear in the backdrop that higher oil prices are inflationary."Gold prices are rising on fears of inflation and as social and political unrest spreads throughout the Middle East, said Adam Klopfenstein, a senior market strategist at Lind-Waldock. "The sentiment is just positive for gold and silver," he told Bloomberg. "People want to have that fear premium. There's a flight-to-quality for gold and fear in the backdrop that higher oil prices are inflationary."

On the Comex in New York on Wednesday, gold futures for April delivery jumped 0.17 percent, or $2.40, to settle at $1,429.60 per troy ounce. In the past 12 months, gold futures have jumped 27 percent. On the Comex in New York on Wednesday, gold futures for April delivery jumped 0.17 percent, or $2.40, to settle at $1,429.60 per troy ounce. In the past 12 months, gold futures have jumped 27 percent.