Khaberni - Silver jumped, surpassing the $65 level for the first time, today Wednesday, while gold rose with the release of weak U.S. job data that revived expectations of interest rate cuts, pressuring the dollar and boosting demand for precious metals.
Silver in spot transactions increased by 2.8% to a record level of $65.63 per ounce.
Gold followed silver's lead and rose in spot transactions by 0.4% to $4321.56 per ounce.
U.S. futures contracts for gold rose 0.4% to $4350.50.
Brian Lann, Managing Director of Gold Silver Central, said, "Many year-end summaries have highlighted that the best-performing asset class is precious metals. I would attribute today's rise in silver to speculative inflow."
The rise came following U.S. data showing an increase in unemployment rate to 4.6% in November, which was higher than the Reuters poll expectations of 4.4%.
Brian Lann added that the unemployment data definitely helped precious metals and weakened the dollar, prompting investors to look for other asset classes that offer higher returns as a hedge against risk.
The dollar index approached its lowest level in more than two months, which it touched last Tuesday, making dollar-denominated bullion more attractive to foreign buyers.
Investors are now anticipating key U.S. inflation readings, with the consumer price index scheduled for release on Thursday and the personal consumption expenditures index, the Federal Reserve's preferred inflation gauge, due on Friday.
For other precious metals, platinum rose by 2.5% to $1896.40, its highest level in more than 14 years, while palladium remained at $1602.60 after rising to its highest level in two months earlier in the session.
