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Silver Hits Another Record Price
Gold rose on Monday but remained below a 25-year peak of $598 an ounce hit last week, while silver gained more than 2 percent to hit new highs not seen in more than 22 years.
Spot gold rose to $592.75/593.50 an ounce from $588.00/588.90 an ounce late in New York on Friday, when the metal hit another multi-year high on buying from funds and investors.
The upside target was pegged around $600 an ounce, a level last seen in December 1980.
"It's certainly looking to test that area," said Darren Heathcote, head of trading at N M Rothschild in Sydney.
The price dips attracted buying from investors but it may not be strong enough to push up gold to $600 during Asian trading, said Heathcote, adding that the metal could find stiff resistance at $596.
Investors have turned to the booming commodities markets for investment alternatives to lagging equity, bond and foreign exchange markets, said dealers.
Tensions in the Middle East, uncertainty about the dollar's outlook, worries about rising energy costs and speculation that central banks would diversify into metals have also boosted gold's appeal, they said.
