Gold prices registered a slight increase, in spite of the announcement of an immediate ceasefire by the Libyan government against the rebels. The persistent bullish behavior of gold can be attributed to a general lack of trust for the Libyan government’s declarations of the ceasefire. Several countries are wary of the fact that Muammar Qadhafi might be merely buying time for himself in order to position his forces in a better way against the rebel fighters. France said that it was still cautious about the ceasefire, and Britain was preparing its warplanes in order to send them to Libya. This uncertainty was leading investors to hold onto their gold investments to save themselves from any potential losses, hence contributing to the increase in gold prices.
The market closed with gold priced at USD $ 1418.07 an ounce, up from its price on Thursday of USD $ 1402.40 an ounce.
Taking cue from gold, the price of sliver also increased, closing in at USD $ 34.90 an ounce from its previous day price of USD $ 34.18 an ounce.