Azerbaijan, Baku, Feb. 23 / Trend /
Gold fluctuated near a seven-week high in London on concern that tensions in Libya and the Middle East and faster inflation will boost demand for the metal as an alternative investment, Bloomberg reported.
Gold "will continue to be boosted by geopolitical factors, inflation threats, and from a return of investment," Tom Pawlicki, an analyst at MF Global in Chicago, said today in a report. Still, prices "have progressed to overbought levels," which may pressure the metal, he said.
Immediate-delivery bullion climbed $2.38, or 0.2 percent, to $1,401.50 an ounce by 10:47 a.m. in London. Prices yesterday rose to $1,410.75, the highest level since Jan. 4, and today swung between a gain of 0.3 percent and a loss of 0.2 percent. The metal for April delivery was little changed at $1,400.70 on the Comex in New York.
Gold held in exchange-traded products fell 4.86 metric tons to 2,014.8 tons yesterday, the lowest level since June 7, data compiled by Bloomberg from 10 providers show. Holdings reached a record 2,114.6 tons in December.