Spot gold rose as high as $1,403.38 an ounce and was bid at $1,401.30 an ounce at 1240 GMT, against $1,388.58 late in New York on Friday. U.S. gold futures for April delivery rose $13.60 an ounce to $1,402.10, having peaked at $1,404.30.
Gold priced in euros hit its highest since January 18 at 1,025.85 euros an ounce, and sterling-priced gold its highest since January 14 at 865.33 pounds an ounce.
"There is no doubt that the recent move higher across the precious metals reflects a degree of safe-haven buying as a result of the unrest in the Middle East," said Daniel Major, an analyst at RBS Global Banking & Markets.
"If (buying) is not through the exchange-traded funds or a clear change in the net long on Comex, it is most likely to be through the physical market -- coin and small bar buying, and I potentially wouldn't rule out larger purchases by high net worth individuals on the back of the unrest we're seeing," he added.
On the other hand, unlike three months ago there really are signs of inflation, at least at the commodity level. If gold tops $1,500 things could get really weird for a while. The real precious metal action these days is in silver, hitting $33.50.
We'll see where this is going.
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