"There is all sorts to support gold -- high oil prices, low real interest rates, and the fact that there are constant reminders that we still have debt problems in Europe," said Standard Bank analyst Walter de Wet.
Violence in Libya, where protests over Muammar Gadaffi's 41-year rule are feared to be degenerating into civil war, and elsewhere in North Africa and the Middle East have boosted gold's appeal as a haven from risk in recent weeks, sending prices to a record $1,440.10 an ounce last week.
Troops loyal to Gaddafi have launched counter-offensives against rebel-held towns, increasing fears that Libya is heading for a civil war rather than the swift revolutions seen in Tunisia and Egypt.
Unrest simmered elsewhere in the region. Saudi security forces detained at least 22 minority Shi'ites who protested last week against discrimination, activists said on Sunday, as the kingdom tried to keep the wave of Arab unrest outside its borders.
The news helped lift U.S. crude prices by more than $2 a barrel to a 30-month high above $106. Saudi Arabia is home to most of OPEC's spare oil output capacity.
Silver and crude oil are up too. Where people are not putting their investments right now? The US dollar. That's disturbing, but it shouldn't surprise anyone that the dollar's no longer considered to be the world's safest investment in times of crisis.
Things are getting ugly out there in the world, and with gas prices up 33 cents from two weeks ago and probably will see another 15-20 cents a gallon before the end of the month, it looks like it's finally our turn to pay the piper.
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