CHICAGO, Mar. 15 -- Gold futures on the COMEX Division of the New York Mercantile Exchange moved up for the second straight session on Monday, as rising uncertainty about the impact of Japan's earthquake and tsunami on the domestic and global economy lifted worldwide demand for safe-haven assets.
The most active gold contract for April delivery added 3.1 dollars, or 0.2 percent, to 1,424.9 dollars per ounce.
A trader mentioned that some investors shied away from riskier assets such as equities on Monday and flocked to the safety of gold as the devastation in Japan let investors ponder the potential impact of the Japanese tragedy on global economy.
Meanwhile, some analysts believed that since much of Japan's infrastructures were devastated by the disaster, the immense reconstruction effort that is coming may enhance gold's appeal as a hedge against inflation, as enormous demand from Japan for raw materials will push up commodity price and increase inflationary pressure.
The Bank of Japan pumped a record 15 trillion yen or 183 billion dollar into the system on Monday to keep the world's third-biggest economy going. Traders mentioned that gold will gain strength as more money flowing into the market will prompt investors to purchase gold as an alternative investment in order to protect their wealth.
Silver for May delivery dropped 9.5 cents, or 0.3 percent, to 35.84 dollars an ounce. April platinum delivery lost 29.4 dollars, or 1.7 percent, to 1,752.3 dollars an ounce.