Gold crosses $1,300,silver at 30-year high

Silver had touched an all-time high of USD 50.35 an ounce in New York in 1980,a year after the Hunt brothers tried to corner the market.

Marketmen said investors parked their funds in bullion in reaction to conflicting reports about the strength of the global economy and reports that US home sales were less than expected.

The trading sentiment was also bullish on account of weakness in European equity markets this afternoon and reports that the number of Americans seeking unemployment benefits rose unexpectedly this week.

Silver prices have gone up by nearly 27 per cent this year,outperforming global equities,treasuries and most industrial metals. Rising sales of automobiles also fueled the prices of silver,which is used in batteries and other industrial items.

Gold continued on its upward trajectory to a record level for the fourth day this week,after the US dollar slid over concern that the Federal Reserve is moving closer to boosting debt purchases.

Both the metals were in demand among investors and funds this year as central banks and governments maintained low borrowing costs and spent trillions of dollars to stimulate their economies.

The precious metal has risen by 18 per cent this year,benefiting from buying by central banks in India,Russia and Taiwan.