Middle East tensions spur demand on gold

The political uprise in the Middle East has pushed demand for higher safe-haven forcing gold to record a seven week high, while silver continues to trade at 30-year high; palladium rose to trade at 10-year high, while the dollar extended its fourth-trading day drop.

Gold for immediate delivery traded at 1,397.91 an ounce setting a high of 1,398.52 an ounce and a low of 1,389.75 an ounce, compared with the opening levels of 1,389.75. Gold futures traded higher by 0.71% or $9.900 to trade at $1,398.500 an ounce.

Major Market Movers

The U.S. today is celebrating Persident's Day leading investors to focus in on Manufacturing and services data presented by European economies, where both sectors sustained the expansion and provided a better outlook for both sectors' performances in the upcoming period.

Inflation threats continue to play a major role in trading where investors seek hedging against it by investing in gold, pushing prices to breach the 1,400.0 an ounce levels and possibly send gold to trade 1,424.15 an ounce as an initial target.

The US dollar index, which tracks the performance of the dollar against six-majors, traded at 77.57 compared with the opening levels of 77.70; while setting a high of 77.75 and a low of 77.56.

The S&P GSCI index closed at 657.62 after gaining 0.22% in trading from the opening levels of 658.08. The Reuters Jefferies CRB index gained 0.51% to close trading 341.78, compared with the opening levels of 340.44.

Gold Fixes & Dollar's Movement:

Metal Fixes (Feb 18); Gold fixes at the AM Fix was set at $1,385.50 an ounce as the PM fixing (Feb 18) was set at $1,383.50 an ounce, meanwhile silver fixing was set at $31.94000 an ounce and Platinum AM Fixing (Feb 18) was set at $1,833.00 an ounce, and at 1,836.00 an ounce during the PM fixing (Feb 18). Finally, Palladium AM fixing was set at $843.00 at (Feb 18) AM fixing, while being set by PM fixing (Feb 18) at $847.00 an ounce.

Other Metals

Silver for immediate delivery traded at $33.42 an ounce compared with the opening levels of $32.65 an ounce, while setting a high of $33.48 an ounce and a low of $32.58 an ounce. Silver future contracts traded higher by 3.45% or 1.114 to trade at 33.410 an ounce

Platinum for immediate delivery traded higher by $20.00, at $1,847.00 an ounce, Palladium gained by $13.00 to trade at $857.00 an ounce.