Commodities: Gold gains, while oil rises amid Yemen conflict

LONDON (ShareCast) - Gold prices rose on Thursday amid a sell-off across global equity markets, while oil prices climbed as conflict grew in the Middle East. Gold for June delivery advanced 1.8% to $1,219.76 an ounce.

IG (LSE: IGG.L - news) analyst Alastair McCaig said: "Gold has obviously enjoyed being out of the spotlight as it has taken this opportunity to quietly jump back above $1200 even after hitting $1220 earlier in the day. As encouraging as this move might be it will have done little to convince the longer-term sceptics that the precious metal is back in favour. " Meanwhile, Brent futures rose 4.3% to $58.92 at the end of Thursday's session, while ICE WTI futures increased 3.8% to $51.10 after Saudi Arabia launched air strikes in Yemen overnight in an effort to defeat rebel Houthi fighters from the north.

CMC Markets analyst Jasper Lawler said: "The chance of actual supply disruption seems unlikely given that Egypt controls the bulk of the Suez Canal and was involved in the strikes. The volatility seen in oil markets was triggered by the airstrikes in Yemen but the real catalyst is the falling US dollar that has been triggering a rally in numerous commodities including gold, silver and copper." Over on LME, three-month copper futures decreased 1.1% to $6,176.00 a tonne.