GOLD prices edged higher on stronger demand for safe-haven assets, while platinum and palladium tumbled after Japanese carmakers shut production in the wake of a massive natural disaster.
The most actively traded gold contract, for April delivery, settled up 0.2 per cent, or $US3.10, at $US1424.90 per troy ounce on the Comex division of the New York Mercantile Exchange.
The thinly traded March delivery contract ended up 0.2 per cent, or $US3.10, at $US1424.60 per troy ounce.
Investors flocked to gold, shedding riskier assets, as they scrambled to assess the likely impact of Japan's earthquake and tsunami on the global economy.
"It's one event after another that benefits gold. We constantly see this emphasis on a flight to safety and quality -- attributes that boost gold," said Bill O'Neill, a principal with LOGIC Advisors.
Phil Streible, senior market strategist at Lind-Waldock, says that Japanese investors tend to buy assets that they can get a better return on versus the yen which returns 0%. A favorite trade is short yen, long gold, for example, says Streible, and now they are "selling their gold and their silver to try and raise back capital
The gold price climbed as the Bank of Japan committed to a liquidity injection of $183 billion and a new round of asset purchases in order to stabilize the financial system
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