Gold jumped nearly 2 percent on Tuesday, its biggest one-day rise since May, resuming its march to record highs as the dollar tumbled and currency market volatility ignited safe-haven buying. Silver surged 3 percent to a 30-year high and platinum group metals also rallied with the entire commodities complex, after the Bank of Japan said it would pump more funds into the country's struggling economy and keep interest rates virtually at zero.
Spot gold rose $25.30, or 1.9 percent, to $1,340.50 an ounce at 2:59 pm EDT (1859 GMT), off an intra-day high of $1,341.20, its seventh record in the past eight sessions. US gold futures for December delivery settled up $23.50 at $1,340.30 an ounce. Holdings of the world's largest gold-backed exchange-traded fund, New York's SPDR Gold Trust, declined for a third session, while those of the largest silver ETF, the iShares Silver Trust dipped from record highs.
Silver surged nearly 4 percent to $22.83 an ounce, near its 30-year high at $22.87. Silver continued to outperform gold, with the number of ounces of silver needed to buy an ounce of gold slipping to a one-year low at around 59. Platinum, buoyed by strength in gold, hit a 4-1/2 month high at $1,699 an ounce and was trading up 1.6 percent at $1,691.50, while palladium rose 3.2 percent to $575.50.
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