Gold prices moved upwards, benefitting from an increased safe-haven demand for gold due to uncertainty regarding the impact of the earthquake and tsunami in Japan on the domestic and international market. The most active gold contract for April delivery rose by 0.2 percent to USD $ 1424.9 per ounce, while American Eagle Gold was at USD $ 1490.17 per ounce. Investors shied away from investing in riskier assets such as equities, which led to an increased demand for gold. Furthermore, several investors believe that the enormous reconstruction effort required in Japan would lead to a huge demand from Japan for raw materials, which would push commodity prices upwards and lead to inflationary pressure. In such a scenario, gold would hedge the investors against inflation.
London Fixing, Spot price of silver closed in at £22.472 per ounce, up from its price of £21.3125 per ounce last week.