Gold Rallies for 7th Day as Yemen Turmoil Boosts Precious Metals

26-Mar (Bloomberg) — Gold headed for its longest run of gains in more than two years as Saudi Arabia and its allies started bombing targets in Yemen, boosting demand for a haven.

Silver, platinum and palladium advanced at least 1 percent, while bullion volume was double the 100-day average for the time of day, data compiled by Bloomberg show. The bombing of Shiite rebels in Yemen marks an escalation in regional tensions with Iran. Saudi Arabia may send ground troops to Yemen, Saudi state TV reported, citing a person it didn’t identify.

“If you start seeing boots on the ground and you start hearing talk of coalitions, that is the time when people start fearing a wider conflict in the Middle East,” Mark O’Byrne, an executive director at bullion dealer Goldcore Ltd., said by phone from Dublin. “That is a classic example of the type of situation in which gold tends to do well.”

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