Silver surged more than 5%, across $49 U.S. an ounce, and gold hit another record high after news emerged that China is considering setting up new investment funds that will diversify its foreign exchange holdings further beyond the U.S. dollar.
Even as analysts murmured about a silver bubble, the metal headed for its biggest daily gain in five months. It is now up nearly 60% this year, after rising more than 80% last year. U.S. gold futures hit a high of $1,518.60 U.S.
China's new investment funds include one or more to invest a part of the country's foreign reserves in energy and precious metals, and another that could intervene in foreign exchange markets, the New Century Weekly said, citing sources close to the central bank.
Safe-haven buying following increasing violence in Syria and Yemen over the weekend also helped lift precious metals.
Oil rose as well, nearing $113 U.S. a barrel, after Libyan rebels in control of key oil-producing areas in the OPEC nation said they won't produce crude for at least a month as they repair fields damaged in fighting.
