Gold held on Wednesday near a lifetime high hit in the previous session as lingering worries about inflation and tensions in the Arab world offset China's latest move to raise interest rates. Silver hit another 31-year peak as the metal attracted interest from investors looking for a cheaper alternative to gold as a hedge against inflation.
The gold:silver ratio dropped to a 28-year low at 36.93. Spot gold added $2.90 an ounce to $1,453.50 by 0601 GMT. Spot silver rose to as high as $39.42 an ounce, its highest level since early 1980, extending Tuesday's gains.