QMX Gold Corp. (fka QMXGF)

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1412.60 Gold Advances, Extending Monthly Increase on Unrest, Inflation
By Nicholas Larkin - Feb 28, 2011 5:33 AM PT

Feb. 28 (Bloomberg) -- Jim Rogers, chairman of Rogers Holdings, talks about his investment strategy for global stocks and commodities. Gold advanced, approaching a record, as tensions in the Middle East boosted oil prices, increasing demand for precious metals as a protector of wealth and hedge against inflation. Rogers also discusses his strategy for the U.S. dollar. He speaks in Hong Kong with Rishaad Salamat on Bloomberg Television's "On the Move Asia." (Source: Bloomberg)

Gold rose in New York, extending the best monthly gain since November 2009, as turmoil in North Africa and the Middle East and concern inflation will accelerate boosted demand for an alternative asset.

The U.S. said it will assist Libyan rebels trying to force Muammar Qaddafi from power, as pro-democracy protests that have swept the Middle East spread to Oman and reignited in Tunisia. The mounting unrest pushed oil prices above $100 a barrel in New York last week. Inflation in the 17-nation euro region quickened to 2.3 percent in January from 2.2 percent in December, a report showed today.

“Inflation expectations are certainly anchored,” Andrey Kryuchenkov, an analyst at VTB Capital in London, said today in a report. There needs to be “escalating geopolitical tensions for sustained gains to December’s all-time highs and beyond.”

Gold futures for April delivery added $6.10, or 0.4 percent, to $1,415.40 an ounce at 7:58 a.m. on the Comex in New York, bringing the gain this month to 6.1 percent. The metal for immediate delivery in London was 0.4 percent higher at $1,415.80.

Bullion rose to $1,409.75 an ounce in the morning “fixing” in London, used by some mining companies to sell output, from $1,402.50 at the afternoon fixing on Feb. 25.

Concern about rising inflation and currency debasement drove gold prices up 30 percent last year for a 10th annual gain, reaching a record $1,432.50 an ounce on Dec. 7. Increasing food and commodity prices have contributed to uprisings in the Middle East and North Africa.
Qaddafi’s Fate

U.S. officials met with their overseas counterparts in Geneva today to discuss the fate of Libya, including measures to pressure Qaddafi out of power and build ties with the nation’s opposition leaders. The regional unrest that ousted Tunisian President Zine El Abidine Ben Ali and Egyptian President Hosni Mubarak reached Oman, where protesters clashed with security forces in the province of Sohar.

“Amid ongoing unrest in North Africa and the Middle East, it is still quite astonishing that the price of gold has not profited more,” Carsten Fritsch, a Frankfurt-based analyst at Commerzbank AG, said today in a report.

Egypt banned the export of gold until June 30, Al Arabiya television reported yesterday, without saying where it obtained the information.

Gold held in exchange-traded products rose 1.22 metric tons to 2,011.32 tons on Feb. 25, rebounding from the lowest level since June 4, data compiled by Bloomberg from 10 providers show. Holdings reached a record 2,114.6 tons in December. Silver ETP assets advanced 106.64 tons to 14,846.3 tons, the highest level since Jan. 18, data from four providers show.

Silver for May delivery in New York rose 2.1 percent to $33.625 an ounce. It climbed to $34.315 on Feb. 22, the highest price since March 1980. Futures reached a record $50.35 that year.

Palladium for June delivery gained 0.6 percent to $792 an ounce. It touched a 10-year high of $863.70 on Feb. 22. Platinum for April delivery was 0.4 percent higher at $1,810.90 an ounce.

http://www.bloomberg.com/news/2011-02-28/gold-gains-approaching-record-as-mideast-unrest-boosts-demand-for-haven.html