Gold and silver rise to reach new highs

Julian Harris
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PRECIOUS metals gold and silver hit fresh peaks against the US dollar yesterday.

Gold surpassed $1,476 (£903) an ounce to reach an all-time high, yet later dropped as some investors took profits. Silver rose as high as $41.32 an ounce, its strongest level since 1981.

“Both are in a bull market,” said Bullion Vault’s Adrian Ash. “Silver is looking extremely strong, and demand doesn’t look like backing off.”

A possible easing of tensions in Libya could soften interest in gold, some analysts suggested.

“Political events tend to be red herrings,” countered Ash. “This is actually about real interest rates. Retained wealth is not going to just wait for price pressures to burn out.”