Benchmark gold futures surged to a 25-year high just shy of $700 an ounce early on Tuesday, powered by relentless investor buying in the metal, due to geopolitical concerns and expectations of further price gains ahead.
Silver rallied 2.5 percent to get back above $14 an ounce, thanks to higher gold and ongoing speculative buying, while platinum hit a record high and palladium also climbed.
By 10:32 am EDT (1432 GMT), June delivery gold on the New York Mercantile Exchange's COMEX division was up $17.10 or 2.5 percent at $697 an ounce, in a range of $679.50 to $699.50, which marked its highest price since September 1980.
"It looks to me like the bulls are running, not only with all the geopolitical news but with the technical factor of momentum, because you've got new highs in metals," said George Gero, vice president at RBC Capital Markets Global Futures.
Gold last broke above $700 in September 1980, and that month it climbed as high as about $730. In January of that year, futures set their record high above $870.
Gold often tracks oil as investors use the metal as an inflation hedge when energy prices are climbing.
Bullion raced to a 25-year high at $697 an ounce, and at last check fetched $693.50/694.50, compared with $677.90/678.90 at Monday's New York close.
Spot gold hit a record high of $850 an ounce in 1980.
COMEX July silver rose 35.0 cents, or 2.5 percent, to $14.12 an ounce, near a session high in trading from $13.6550 to $14.17.
Spot silver edged to $14.12/14.22 an ounce, up from its last close at $13.78/13.88. Tuesday's fix was at $13.8950.
NYMEX July platinum was up 2.6 percent, or $31.10, at $1,233 an ounce. It earlier hit a record of $1,236. Spot platinum climbed to $1,228/1,233. June palladium rose $14.75 or 3.9 percent to $390 an ounce, off a fresh four-year high of $392.10. Spot palladium was worth $385/390.
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