|ORO Y PLATA INTERNACIONAL S.A.
Silver surges 5 percent on dollar and
gold at record
(Reuters) - Spot silver surged more than 5 percent to top $49
ounce on Monday, moving closer to its 1980 all-time peak lifted
by a weak dollar and strong physical demand in Asia that also
sent gold to a record high for a seventh consecutive session.
Spot silver was heading for its biggest daily gain in five months, hitting a
31-year high of $49.31 an ounce. It was trading at $49.07 as of 5:45 a.m. ET.
Spot gold hit a record high of $1,518.10 an ounce, before easing to
$1,517.05. U.S. gold futures hit an all-time high at $1,518.6.
"Everyone is buying," said a Hong Kong-based dealer. "There is stop-loss
buying, as well as a good buying interest from China."
U.S. silver futures jumped 8.2 percent to $49.82 an ounce in unusually
large trading volume, just about 50 cents off its all-time peak of $50.35 hit
on January 18, 1980. They stood at $49.11 as of 5:42 a.m. ET.
Silver prices have climbed nearly 60 percent this year, after jumping more
than 80 percent in 2010.
That has outpaced gold's 7 percent rise and a 10-percent gain in the
19-commodity Reuters-Jefferies CRB index and drawn investors big and
small to silver.
Holdings in the largest silver-backed exchange-traded fund, iShares Silver
Trust, have risen by 2.4 percent this year, while holdings in SPDR Gold
Trust, the world's top gold ETF, have declined by 4 percent.
Buying interest in physical silver has also jumped in India, where gold is
"The rally has been great as traders are buying silver like mad," said an
official at a private bank in India.
"We normally don't import silver on a regular basis, but we imported about
10 tonnes from last month. Investors are joining in the rally in India to
catch on the price appreciation."
"It's the dollar play," said a dealer based in Singapore.
The dollar index languished around its three-year low on Monday, with
investors expecting further weakness as the upcoming Federal Reserves'
policy-setting meeting is likely to announce the continuation of low
The escalated violence in Syria and Yemen over the weekend also helped
lift gold, seen as a safe haven during time of turmoil.