FXstreet.com (Barcelona) - Gold futures remain consolidated just under Friday´s record high of $1441.00/ounce as escalating violence in Libya once again draws strong safe-haven demand. Around mid-day over Europe, the front-month contract trades some $4.00 above the day´s opening price at $1439.00.
Soaring oil prices due to unrest in North Africa and the Middle East brings with it fears of inflation in key economies around the world, subsequently boosting the yellow metals appeal as a hedge investment. What´s more, a fresh downgrade of Greece´s credit rating by Moody´s is reminding the market of European debt troubles, further supporting gold prices towards historic highs reached last week.
Looking ahead, traders will key in on speeches by the ECB´s Trichet as well as Fed members Lockhart and Fisher in an effort to gauge the possibility of monetary tightening in the near-term.
