Gold surged nearly 2 percent to a record high near $1,375 an ounce on Wednesday, boosted by worries over currency depreciation after the Federal Reserve signalled it will resume buying government debt to stimulate the economy.
It was the biggest percentage gain since September 14 for gold, which has rallied 25 percent so far this year. Investors have sought safe havens with the Fed and other central banks professing readiness to inject more money into the financial system, a procedure known as quantitative easing.
Silver hit a 30-year peak to approach $24 an ounce, and the Reuters/Jefferies CRB index - a barometer for commodities - rose above 300 points for the first time in two years, as the dollar fell broadly. Wall Street rose more than 1 percent on strong bank earnings. Spot gold hit an all-time high of $1,374.15 an ounce and was up 1.5 percent at $1,370.20 an ounce at 2:34 pm EDT (1834 GMT). US December gold futures settled up $23.80 at $1,370.50.
Silver hit $23.94, its strongest showing since 1980, and was last up 2.5 percent at $23.87 an ounce. Meanwhile, spot palladium rose as much as 2.5 percent to a one-week high of $594.50 an ounce on the back of the weaker dollar, as investors continued to pile into one of the top performing commodities of 2010. Palladium was up 1.9 percent to $591 an ounce, and platinum gained 1.7 percent to $1,704 an ounce.
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