Gold sets another record high

gold silver pricesClick chart for more on gold, silver and other commodities By Ben Rooney, staff reporter


NEW YORK (CNNMoney) -- Gold prices rose to a record high Monday as the political turmoil in Libya boosted demand for tangible "safe-haven" assets such as precious metals.

April gold futures closed at a record high, rising $5.90, or 0.4%, to $1,434.50 an ounce. Earlier in the session, gold prices hit an intraday record high of $1,445.70 an ounce.

"Gold prices have made new all-time highs...as investors flock toward the safe haven against geopolitical and inflationary fears," said Janney Montgomery Scott analyst Dan Wantrobski in a report.

In Libya, fighting between rebels and forces loyal to Libyan leader Moammar Gadhafi continued to exact heavy tolls Monday, with an estimated 1,000 to 2,000 deaths so far.

The strife in Libya follows relatively non-violent uprisings in Tunisia and Egypt earlier this year. Other countries in the region have also been shaken by protests, including Yemen, Oman and Bahrain.

The unrest has pushed oil prices sharply higher in recent weeks as investors worry that supplies could be disrupted from crude exporting nations. Gold prices often rise when the global political and economic outlook turns cloudy, since precious metals are seen as safer bets than stocks or bonds in times of uncertainty.

In addition to geopolitical concerns, gold has been supported by worries about rising inflation.

Gold is seen as a hedge against inflation because the metal tends to hold its value when consumer and wholesale prices rise.

With inflation rates already spiking in some developing economies, some investors worry that the combination of low interest rates in the U.S. and the Fed's quantitative easing plan will cause inflation to spike.

Silver prices were also stronger Monday, rising 75 cents to $36.07 an ounce. That's up over 17% from the start of the year. To top of page

Overnight Avg Rate Latest Change Last Week
30 yr fixed4.04%4.16%
15 yr fixed3.15%3.15%
5/1 ARM3.13%3.15%
30 yr refi4.15%4.23%
15 yr refi3.26%3.22%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 17,440.59 -127.94 -0.73%
Nasdaq 5,039.78 -48.85 -0.96%
S&P 500 2,067.64 -12.01 -0.58%
Treasuries 2.23 -0.04 -1.89%
Data as of 2:14am ET
Company Price Change % Change
Bank of America Corp... 17.67 -0.23 -1.28%
Freeport-McMoRan Inc... 11.37 -0.92 -7.49%
AT&T Inc 34.32 0.03 0.09%
Apple Inc 122.77 -1.73 -1.39%
Ford Motor Co 14.55 0.16 1.11%
Data as of Jul 27

Sections

Chrysler owners that haven't fixed their recalled cars are eligible for some incentives -- find out if your car is included. More

China's market is spreading investor anxiety around the world and putting Europe -- its biggest trading partner -- on edge. More

Google is scaling back its unpopular social network integrations, starting with YouTube comments. More

NASA has teamed up with Freelancer.com to crowdsource tools for Robonaut 2, its first humanoid robot in space. More