Several apprehensions are in the air that the gold might rise in London as a month long unrest in Libya increases the demand for the metal as an alternative investment option.

This week observed a rise of 0.9% as Libyan leader Muammar Qaddafi has shielded the capital of Tripoli with tanks.

A Hong Kong based trader stated that he observed a steady buying throughout the day with some offers around $1,407.

MKS Finance issued a statement that gold was now only 2% off its record high ($1,431.30/oz) and one might feel that it would continue to be boosted by inflation threats, geopolitical factors and from a return of investment.

Triland made a statement in a note saying, “With base metals and PGMs (platinum group metals) coming under pressure, along with stocks taking a hammering, the Middle East bid to gold is pulling it (silver) up but the risk- deleveraging sell off in industrials is pulling it down”.

Some data compiled by Bloomberg highlighted a drop of 5.29 metric tons was observed yesterday in exchange traded products which is considered to be the lowest level since June 4.

“As protests in Libya intensify, we expect gold and silver to be underpinned by flight-to-safety demand”, James Moore, an analyst in London, said today in a report.