GOLD PRICES

Gold Bullion prices stalled just above $1400 per ounce for the second day running on Thursday, as crude oil rose sharply amid the near-meltdown at Japan's Fukushima nuclear reactors.

What's your true level of risk today? No idea. But the least your fund manager, advisor or favorite financial columnist can do today is remember the lesson of 2007, and highlight the range of risks and possible fall-out which might lie ahead. Take inflation, for instance. Though small, the risk of currency devaluation and hyper-inflation in the developed West is still materially underpriced by gold bullion

Gold Bullion prices jumped at the start of Asian trade on Monday, gaining 1% against all major currencies as news broke that a third nuclear reactor north-east of Tokyo has gone into meltdown following last week's Japanese tsunami.

Gold-buying prices held at two-week lows vs. the Dollar in London on Friday, as the US currency jumped and world stock markets sank after a powerful tsunami hits the Japanese coast 190 miles north-east of Tokyo.

China should increase its gold reserves appropriately, and must take every chance to buy, especially when Gold Prices fall, said Li Yining, a senior economist at Peking University and an advisor to the national parliament's Political Consultative Committee, quoted today by Beijing's official Xinhua News Agency.

Despite the robust gold boom and fears that oil prices would rise owing to the Middle East crisis, these two commodities will only make an actual gain of about 4 percent by the end of 2011, according to a CNNMoney survey.

Gold climbed to a record high above $1,440 an ounce on Monday as the threat of violence spreading in the Middle East and North Africa pushed oil prices to 2-1/2 year highs and burnished the metal's safe-haven appeal.

As many investors know, gold is a safe-haven asset that can actually increase in value during stock market slides and times of recession. But what else do you really know about this commodity? Are you taking full advantage of it? Do you know how to work it into your overall investment strategy?

Gold rose toward $1,425 an ounce on Friday as U.S. February payrolls data supported expectations the Federal Reserve will hold off tightening monetary policy and as unrest in North Africa continued.

Gold fell nearly 1.5 percent on Thursday, snapping a four-day winning streak as indications the European Central Bank may raise interest rates to battle inflation dented bullion's investment appeal.

Holdings of the world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, fell for a fifth consecutive month in February, data from the New York-based fund showed, the longest run of outflows since the trust's inception.

Gold prices held just below the previous session's record high in Europe on Wednesday, as the acceleration of global inflation and the threat that violence in the Middle East and North Africa will spread supported interest in the metal as a haven from risk.

Spot gold rallied to a record of $1,432.10 an ounce, surpassing its previous record of $1,430.95 set on December 7, as chaos in Libya and political turmoil in the Arab world prompted safe-haven buying and soaring oil prices boosted bullion's inflation hedge appeal.

Gold jumped against a falling Dollar in London trade on Tuesday, touching $1,432.10 per ounce, one dollar above the all-time peak of 7th Dec. Silver marks a fresh all-time high at $34.44/oz, while Western stock markets fell and Brent crude oil rose towards new two-year highs.

Spot gold rose to a session peak at $1,421.35 an ounce and was up 0.6 percent at $1,419.66 an ounce by 1240 GMT. It rose 6 percent in February, its largest monthly rise since August, when the U.S. Federal Reserve first indicated that it would continue the massive money printing by monetizing government bonds.

Gold was little changed near $1,410 an ounce on Monday but notched its biggest monthly gain since August as chaos in Libya and rising tensions across the Middle East prompted investors to buy the metal as a safe haven. The US dollar lost its status and is at November lows.

The proportion of total gold demand accounted for by jewelry fell to just over 50 percent in 2009 from 75 percent in 2004. In the same period investment demand nearly tripled. But jewelry buyers still have a key role to play in the gold market, which they are likely to keep despite any slight fall-off in demand.

Gold rose to $1,413 an ounce in Europe on Monday as turmoil in the Middle East region lifted safe-haven buying and fueled a fresh spike in oil prices, stoking concerns over U.S. growth and knocking the dollar.

Why did the price of gold hit record highs in 2008? Take a look at the headlines - government bailouts of failed banks, mortgage and credit crises, rising inflation, slowing growth and global insecurity. In order to protect themselves from treacherous financial markets and depreciated paper currencies investors worldwide are turning to gold.

Gold and Silver Prices failed to hold onto a sharp overnight bounce in London trade on Friday, trading below $1404 and $33 respectively per ounce as volatility in crude oil remained at record levels but world stock markets rose for the first day in six.

Merger and acquisitions activity in the global mining sector is expected to accelerate in 2011, fueled by strong commodity prices and repaired balance sheets, advisory and accountancy firm Ernst & Young said on Wednesday.