Daily Gold Update

Source: Marketwatch

San Francisco— Gold settled at a record and silver rallied 2.4% Monday as inflation fears kept investors attracted to precious metals, which were also helped by a weaker dollar. Gold for June delivery added $5.30, or 0.4%, to end at $1,509.10 an ounce on the Comex division of the New York Mercantile Exchange. Earlier, it hit an intraday record of $1,519.20 an ounce. That was gold�s sixth consecutive high-water mark and its eighth straight day of gains. May silver rallied $1.09, or 2.4%, to $47.149 an ounce. It had traded as high as $49.82 an ounce. The thinly traded, front-month April contract settled at $47.151 an ounce, near the nominal record for spot silver.

Back in January 1980, spot silver hit an intraday high of $50.35 an ounce and settled at a record $48.70 an ounce. Investors booked some profits in both metals Monday, said Bart Melek with TD Securities in Toronto. For silver, �the trajectory might be too steep,� bringing to some investors� minds an asset bubble, Melek added. However, silver�s gains could continue, he said. In addition to its rally alongside gold on worries about inflation and currency debasement, silver also faces supply shortages amid more investment and industrial demand, Melek said. See full story.