Gold Further Hikes Amid Middle East Unrest, Oil Rally

Gold futures on the COMEX Division of the New York Mercantile Exchange further hiked on Wednesday, as investors remained concerned about developments in the Middle East and North Africa. Besides, rally in energy prices intensified the fear of inflation.

The most active gold contract for April delivery rose 10.4 dollars, or 0.7 percent, to 1,438 dollars per ounce.

Market analysts said that gold prices could remain supported in the near term by unrest in Libya and Middle East.

The U.S.-led alliance is preparing to direct more attacks against Libyan leader Muammar Qaddafi's ground forces and meanwhile, the troubles in the Middle East turned increasingly violent with Syrian troops opening fire on protesters and Yemen's president warning that the country would slip into civil war if he was forced to quit.

Moreover, gold market also gained support from increasing concerns over inflation, as world's crude oil price has rallied for three straight trading days. Crude oil futures hit 105.75 dollars per barrel on Wednesday in New York, propelled by continued worries about the Middle East and North Africa

Gold rose for the sixth straight session and touched 1,441.2 dollars during Wednesday's intra-day trading, which is near the record of 1,445.7 dollars made on March 7.

A trader noted that gold is likely to challenge 1,500 dollars sooner rather than later, especially if prices firm around 1,475 dollars in the coming sessions.

Meanwhile, silver for May delivery also hiked 92.9 U.S. cents, or 2.56 percent, to close at 37.198 dollars. April's platinum gained 20.6 dollars, or 1.2 percent, to 1760 dollars.