As fighting neared the Libyan capital of Tripoli today, gold surged past $1,400. Libya currently produces 1.8 million barrels of oil a day, accounting for 2% of total world production. The unrest is already causing oil fields to shut down.
The correction that gold experienced since the beginning of this year is clearly over. In January, gold corrected by 7%, and failed to head higher in the first 2 weeks of February. However, gold rose 3% last week and is continuing to rise.