Gold Rises, Silver Goes to 30-Year High as Middle East Unrest Spurs Demand


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Mr. Gao co-found and became the CFO at Oxstones Capital Management. Mr. Gao currently serves as a director of Livedeal (Nasdaq: LIVE) and has served as a member of the Audit Committee of Livedeal since January 2012. Prior to establishing Oxstones Capital Management, from June 2008 until July 2010, Mr. Gao was a product owner at Procter and Gamble for its consolidation system and was responsible for the Procter and Gamble’s financial report consolidation process. From May 2007 to May 2008, Mr. Gao was a financial analyst at the Internal Revenue Service’s CFO division. Mr. Gao has a dual major Bachelor of Science degree in Computer Science and Economics from University of Maryland, and an M.B.A. specializing in finance and accounting from Georgetown University’s McDonough School of Business.

Gold rose, silver gained to a 30- year high and palladium jumped to the highest price in almost 10 years on demand for precious metals to hedge against declines in other assets because of unrest in the Middle East.

At least five people have been killed since demonstrations against Bahrain’s ruling Al Khalifa family began on Feb. 14. Demonstrators in Libya yesterday demanded the government’s overthrow. Gold bar and coin demand in the Middle East jumped 39 percent in the fourth quarter from a year earlier, according to World Gold Council figures released yesterday.

“If you see violence, you would buy gold expecting that the domestics would buy gold,” said Peter Fertig, owner of Quantitative Commodity Research Ltd. in Hainburg, Germany.

Gold for immediate delivery climbed $2.85, or 0.2 percent, to $1,386.95 an ounce by 8:49 a.m. in London, bringing the gain this week to 2.2 percent, the most since the last week of 2010. Gold futures for April delivery climbed $2.20, or 0.2 percent, to $1,387.30 an ounce on the Comex in New York.

Silver jumped as much as 0.6 percent to $31.9775 an ounce, the highest since March 7, 1980, and palladium climbed 0.5 percent to $848.88 an ounce, the highest since Feb. 28, 2001.

The record for spot gold is $1,431.25 an ounce, set on Dec. 7. The metal will probably climb to $1,440 in two or three weeks, Fertig said.

Assets in gold-backed exchange traded products increased 3.5 tons to 2,019.92 tons yesterday, the first rise in three days, data compiled by Bloomberg from 10 providers show. Holdings reached a record 2,114.6 tons in December.

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