Francisco Blanch, global head of commodities research at Bank of America-Merrill Lynch, talks to Bloomberg about the outlook for gold and oil prices. In his opinion, oil may climb to $140 in the near future, while gold to $1500 per ounce.
Gold futures April delivery closed up $10.30, or 0.7%, at $1,426.40 an ounce on the Comex division of the New York Mercantile Exchange after tapping a high of $1,435.10. Prices marked their highest closing level since March 9. Uncertainty surrounding the conflict in Libya and the nuclear crisis in Japan lured investors to the precious metal as an investment refuge, lifting gold prices by more than $10 an ounce.
May silver finished up 94 cents, or 2.7%, at $36 an ounce today.
Goldâ€™s short term resistance is near $1,440 and silverâ€™s is at $37.
Crude-oil futures also gained on Monday as the conflict in Libya escalated.
Light, sweet crude for April delivery rose $1.22, or 1%, to $102.30 a barrel on the New York Mercantile Exchange. It earlier rose as high as $103.35 a barrel
Oil prices are likely to remain elevated while the situation in the Middle East and North Africa remains volatile.