SILVER prices surged more than 5 per cent at one point yesterday, closing on a 31-year high just short of its all-time peak in 1980.
Gold once again hit a new record as tensions in the Middle East rumbled on. It reached $1,518.10 (£919.10) an ounce while silver hit $49.31. Oil also rose, with Brent climbing to $124.75 a barrel before falling back.
As well as unrest in Syria and Yemen, traders also blamed a weak dollar, hit by concerns that the US Federal Reserve will not seek to raise interest rates when it meets this week.
The Fed meeting will be followed by the first press conference in the central bank’s 97-year history. Questions are expected to focus on when an interest rate hike may come and how it will exit quantatitive easing.
Traders said silver and gold prices have been boosted by strong demand in Asia.
“Everyone is buying,” said one dealer. “There’s stop-loss buying, as well as good buying interest from China.”
Others said investors in India who traditionally bought gold were now turning to silver too. “We normally don’t import silver on a regular basis,” said one Indian bank official. “But we imported about 10 tons last month. Investors are joining in the rally in India to catch the price appreciation.”
However the commodities fell as some investors took profits after silver failed to reach its all-time high.
Gold once again hit a new record as tensions in the Middle East rumbled on. It reached $1,518.10 (£919.10) an ounce while silver hit $49.31. Oil also rose, with Brent climbing to $124.75 a barrel before falling back.
As well as unrest in Syria and Yemen, traders also blamed a weak dollar, hit by concerns that the US Federal Reserve will not seek to raise interest rates when it meets this week.
The Fed meeting will be followed by the first press conference in the central bank’s 97-year history. Questions are expected to focus on when an interest rate hike may come and how it will exit quantatitive easing.
Traders said silver and gold prices have been boosted by strong demand in Asia.
“Everyone is buying,” said one dealer. “There’s stop-loss buying, as well as good buying interest from China.”
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| Silver |
However the commodities fell as some investors took profits after silver failed to reach its all-time high.
