By Rhiannon Hoyle
LONDON—Silver prices topped $40 a troy ounce, and gold set another intraday record as a weaker U.S. dollar and higher oil prices supported demand for the metals as alternative stores of value.
Ahead of the New York day, spot gold traded at $1,470.20 an ounce, up $11.80, or 0.8%, and just below a fresh intraday record of $1,470.24 an ounce set early in the global day.
Spot silver hit a 31-year high at $40.25 an ounce and recently as 57 cents, or 1.4%, to $40.21 an ounce.
Gold and silver, which are denominated in U.S. dollars, are finding particular strength from a weaker greenback, analysts said. The euro hit a 15-month high against the dollar as investors and traders speculate on further rate hikes by the European Central Bank.
"U.S. growth is also being closely watched, and any signs of weakness should help spur gold higher," a London-based trader said.
Precious metal prices aren't being driven solely by developments in the U.S. and the dollar, though, Commerzbank analysts said. Inflation risks continue to play a key part, particularly as the price of oil rose again, this time on reports that a Libyan oil field has been damaged.
Gold is often purchased as a hedge against inflation, as the metal is seen by investors as a reliable store of value.
"High investment demand is also playing a role in the price rally," Commerzbank added in a note to clients. The world's largest gold-backed exchange-traded fund, SPDR Gold Trust, Thursday registered the highest inflows in a single day since January, at almost 12 metric tons. Holdings now stand at 1,217 tons.
Among other precious metals, spot platinum was up $29, or 1.6%, at $1,809 an ounce, while spot palladium climbed $24, or 3.1%, to $798 an ounce.
