Gold powered to an all-time high at $1,300 an ounce on Monday as worries about the health of the global economy spurred buying, with top consumer India also defying high prices during the festive season. Silver, often considered the poor man's gold, rose to a 30-year high as investors chased cheaper alternative. The metal has gained nearly 30 percent this year.
-- Silver at 30-year high
Spot gold added $3.25 an ounce at $1,298.85 by 0658 GMT, after rising as high as $1,300. Gold has gained on a weaker dollar and economic uncertainty after the Federal Reserve raised expectations of new measures to stimulate growth.
"We may see a bit of short-term profit taking, I would say. Of course on a longer-term basis, there will still be an upward trend for gold prices," said Ong Yi Ling, investment analyst at Phillip Futures in Singapore. "I think by the end of this year, we could look at about $1,350 or even $1,400." Physical dealers in Singapore noted demand from India, the world's top buyer, despite record prices as the festive season progressed. The auspicious day of Dhanteras, when the country's jewellery shops normally witness the highest gold sales every year, falls in November.
US gold futures for December delivery rose $2.2 an ounce to $1,300.3 an ounce, within sight of an all time high at $1,301.60 hit on Friday. Thinly-traded silver jumped to its highest in three decades at $21.60 an ounce. The world's largest silver-backed exchange-traded fund, the iShares Silver Trust, said its holdings rose to a record high at 9,613.02 tonnes by September 24 from 9,582.59 tonnes on September 23.
Silver's main sources of demand are for use in industrial applications such as semi-conductors and jewellery. The world's largest gold-backed exchange-traded fund, SPDR Gold Trust, said its holdings fell to 1,300.521 tonnes by September 24 from 1,301.433 tonnes on September 23.The holdings hit a record at 1,320.436 tonnes on June 29.