Gold futures posted gains in Asian trading session on Tuesday on fears of escalating tensions in North Africa and Middle East. Investors are shifting their focus towards the gold due to safe haven and risk free status.
Analysts from Barclays Capital commented, “Continued geopolitical turmoil across the Middle East and North Africa region has boosted safe buying in gold and silver.”

Despite pressure from all over the world and major countries suggesting more sanctions on Libya due to unjust treatment of Gaddafi to his opponents, more riots and attacks were reported between the Gaddafi loyalists and the opposition.

Analyst from MF Global commented, “The tensions in the Middle East will likely ensure that energy prices remain firm for little while longer, and so we would be cautious about jumping back into the metals at this early stage.”

Gold future contract for April delivery gained 17 cents to $1,412.30 per ounce on Comex at New York Mercantile Exchange.

Silver future contract for May delivery remained the most traded contract at NYMEX and moved up 6 cents to $33.88 per ounce. Other metals remained mixed for the day as copper future contract for March delivery declined 0.6 percent to $4.45 per pound.

Platinum’s future contract for April delivery surged 0.5 percent to $1,810.10 per ounce whereas March future contract for palladium remained unchanged at $797.65 per ounce. Some analysts maintain different opinion and do not believe that the Chinese growth would be supportive to base metals as the effect of Middle East and North African political crisis is much severe.