NEW YORK: Gold and silver prices surged on Monday, as their safe-haven appeal drew in investors spooked by the collapse of Silicon Valley Bank, with the crisis also sparking hopes the US Federal Reserve would have to slam the brakes on its aggressive monetary policy.

Global share markets tumbled, while the US dollar and Treasury yields extended their declines despite efforts by regulators to control the Silicon Valley Bank and Signature Bank turmoil.

“Gold looks very much like it is fulfilling its mandate as a safe haven,” with support from short covering of long exposures, said Bart Melek, head of commodity markets strategy at TD Securities.

Spot gold jumped 2.2% to $1,909.19 per ounce by 11:13 a.m. EDT (1513 GMT), the highest since early February. US gold futures gained 2.5% to $1,914.40.

Other precious metals followed suit, with silver advancing 6.2% to $21.78 per ounce, platinum jumping 3.9% to $996.26, and palladium soaring 6.6% to $1,469.47.