PRECIOUS METALS: Gold, Silver End Higher As Investors Eye Oil

NEW YORK (Dow Jones) - Gold futures rose while silver rose to a new maximum of 31 years older than shelter demand kept prices driven.
The most actively traded gold contract for April delivery closed up 0.4%, or $ 5.90 to $ 1434.50 an ounce on the Comex division of the New York Mercantile Exchange.
Gold closed below its record closing price of $ 1437.70, set March 2, but set a new intraday high, rising to $ 1445.70 per troy ounce as the Comex trading floor opened.
The delivery of transactions adjusted March gold contract ended 0.4%, or $ 5.90 to $ 1434.10 per troy ounce.
Silver for May delivery, the most actively traded contract, ended up 1.5%, or 53.8 cents, to $ 35.865 an ounce troy. The white metal was last at these price levels in March 1980 when the Hunt brothers of Texas famous attempt to corner the silver market.
Both precious metal climbed higher on reports of riots in Libya, one of the 10 members of the Organization of Petroleum Exporting Countries. Monday, forces loyal to Colonel Muammar Gaddafi clashed with opposition fighters near oil facilities. The conflict began with protests for democracy in the capital city of Tripoli for nearly a month and is rapidly unraveling in civil war.
"It seems that Libya is getting worse, is full-of-the raids, and sending gold and oil," said Bob Haberkorn, senior market strategist at Lind-Waldock.
Officials of the European Union and the U.S. Kadhafi has asked to resign and end the fight, but the embattled leader is strong to crush the uprising.
In the latest development, the Arab League expressed its support for the imposition of a no-fly zone on Libya to prevent government aircraft attacking the rebels, a French official said Monday.
The uncertainty surrounding the future of Libya has kept the price of gold and silver encouraged as investors look for precious metals as a shield against market volatility.
"[With] the possibility of a relaxation of tensions tenuous, at best, gold and silver should continue to enjoy the support of safe-haven buying and the demand for inflation hedge," said Marc earth metals analyst Precious Standard Bank in a note to clients.
High oil prices due to the interruption of exports from Libya, also fanned investor interest in gold. Oil holds above $ 100 a barrel on the Nymex as investors worry that the protracted conflicts in the Middle East substantially the impact of global supply.
"Every title has been to promote energy costs, which is inflation," said George Gero, vice president of RBC Capital Markets Global Futures.
Investors also have flocked to precious metals like gold and silver by concerns about higher inflation, which is accelerating thanks to oil prices and concerns that global economic recovery could stall the fight of consumers to meet the rising energy costs.
Meanwhile, the future of platinum and palladium ended in negative territory on Monday. Both metals are widely used as catalysts in industrial production, and the outlook for U.S. economyturning negative, investors shed these metals on expectations of lower demand.
Platinum for April delivery, the most actively traded contract was established on 1%, or $ 17.50 to $ 1820.40 per troy ounce on the Nymex.
Palladium for June delivery, the most actively traded contract, closed down 2.4%, or $ 19.70 to $ 790.10 a troy ounce on the Nymex.

Settlements (ranges include open-outcry and electronic trading): 
London PM Gold Fix: $1,437.50; previous PM $1,427.00 
Apr gold $1,434.50, up $5.90; Range $1,428.30-$1,445.70 
May silver $35.865, up 53.8 cents; Range $35.605-$36.745 
Apr platinum $1,820.40, down $17.50; Range $1,801.60-$1,847.60 
Jun palladium $790.10, down $19.70; Range $782.00-$820.90 
(Source: http://online.wsj.com/article/BT-CO-20110307-711197.html)