There are mounting fears we could see a second spike in Covid-19 cases in the world's leading economies.
Among the best performing non-leveraged ETFs of Wednesday, the iShares Silver Trust (SLV) was up 7.6% as Comex silver futures rose 6.7% to $23.0 per ounce.
Spot gold was up 1% at $1,859.56 per ounce by 0713 GMT, after hitting its highest since September 2011 at $1,865.35 earlier in the session. USA gold futures rose 0.7 percent to $1,856.80.
Gold futures surged to an nearly nine-year peak and silver touched the highest since 2014 after Hong Kong reported additional cases of the virus and new infections in the Australian state of Victoria surged, fueling demand for haven assets.
Gold prices today hit a fresh all-time high of Rs 50,021 per 10 grams, backed by positive trends in global rates, coupled with a weaker dollar.
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Worldwide gold jumped more than 1 percent to its highest in almost nine years, driven by a weaker dollar and as expectations of more stimulus to resuscitate pandemic-hit economies lifted the metal's appeal as an inflation-hedge, a Reuters report said.
Global bullion prices edged higher in early morning deals on Wednesday morning. "Rising virus cases and US-China tensions have also underpinned the gold price". Rebound in industrial demand for silver to be used for manufacturing of products ranging from solar panels to electronics has also led to the rise in prices in the worldwide commodity markets.
"The silver price is rising because of its duality as not only a valuable investment but also as an industrial metal ... interest in silver has risen to levels we have not seen in some time". This comprises Rs 11,594 crore silver futures compared with Rs 3,633 crore a year ago, and Rs 9,058 crore in gold futures compared with Rs 8,068 crore in the same period last year.
The price of gold gained momentum on the back of European leaders agreeing on a stimulus package to revive their Covid-hit economy and the US Congress struggling to agree on a new aid package.
"Gold has managed to break through the $1,818 mark this week, as this precious metal pushes into a fresh eight-year high on the way to the [September 2011] $1,921 record high", London-based IG senior market analyst Joshua Mahony said yesterday.