SINGAPORE (Commodity Online) : Gold prices eased a bit in Asian trade Thursday from record overnight gains while silver surged to near three year high.
Gold for immediately delivery was seen trading at $ 1292.61 an ounce at 12.00 noon Singapore time while spot silver gained as much as 0.3 percent to $21.2225 an ounce, the highest level since March 2008.
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Analysts said the precious yellow metal might break the psychologically important $1,300 level soon as economic uncertainties boosted investor appeal for these safe-haven assets.
The bullion also took advantage of a weak dollar as it hovered near its 6-month low against a basket of currencies, as talk the Federal Reserve will soon start printing more of the currency drove down Treasury yields and dragged it to a five-month low on the euro.
In addition to dollar weakness, gold has gotten a boost from concerns about the stability of the financial system and the outlook for fiat currencies in general.
Among other precious metals, platinum for immediate delivery gained as much as 0.4 percent to $1,640.38 an ounce, the highest price since May 19, before trading at $1,636.75. Palladium dropped 0.3 percent to $544.85 an ounce.
Holdings in the iShares Silver Trust jumped 127.81 tones, the biggest gain in nearly 10 months, to 9,509.55 tones.
On Wednesday, gold futures climbed to a record $1,298 an ounce after the Fed said it was willing to ease monetary policy further to boost the U.S. economy, triggering a slump in the dollar.
Gold futures for December delivery rose $17.80, or 1.4 percent, to settle at $1,292.10. Spot gold hit a new record of $1, 296.10 an ounce and was trading at $1,290.90 an ounce
