Gold and Silver Price Update. Possible Bailout of Portugal and the Military Intervention in Libya

Gold is nearing record high price levels, following reports about a rise in Portugal’s sovereign debt and a possible bailout of the country by the European Union. In the Singapore market, immediate delivery of gold gained 0.2 percent and traded at USD $ 1439.53 an ounce, whereas the April-delivery contract in New York was at USD $ 1438.20 an ounce.

Portugal’s Parliament rejected a deficit-cutting plan proposed by the government, which increased the country’s debt yields and fueled speculations that it would follow the same path of Greece and Ireland by taking a European Union Bailout. This, coupled with the ongoing military intervention in Libya in order to enforce a no-fly zone over the country, is increasing gold’s value as a safe-haven for investments, fueling its price.

Cash silver crossed USD $ 37.4263 an ounce, which is its highest level since 1980.