Precious metals rose as investors sought a safe haven from wobbly currencies.
Gold increased to within striking distance of its all-time high while silver surpassed $30 per troy ounce for the first time in three decades as the markets reacted to the U.S. Federal Reserve chair disclosing additional quantitative easing is a possibility when the Fed holds its final meeting of 2010, according to published reports. Also influencing the metals' values is European nations' continued struggle with debt-riddled banks.
"Silver is quite often the forgotten metal," David Jollie, analyst at Mitsui Precious Metals, told the Financial Times. "Because it tends to follow gold to a degree, the gradual improvement in the fundamentals has probably gone unnoticed. But the fundamentals are still there."
Thus far this year, silver's value has increased 77 percent as compared to the 30 percent that gold has achieved. On Monday, spot silver prices rose to $30.06 per troy ounce, its highest value since 1980. Gold increased to $1,420.31.
"Precious metals generally should be supported this week by the renewed focus on US quantitative easing," Edel Tully, a UBS precious metals strategist, told the Financial Times.
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