Silver futures topped $42 an ounce, extending a rally to the highest since 1980 on mounting demand for the precious metal as a hedge against inflation.
U.S. wholesale costs increased 0.7% in March, led by surging energy, the government said. Compared with a year earlier, prices climbed 5.8%. Silver reached $42.21/oz.—the highest in 31 years. And the white metal has climbed 36% this year—the biggest gain among the 19 raw materials in the Thomson Reuters/Jefferies CRB Index.
"Inflation is back in vogue," said Adam Klopfenstein, a senior strategist at Lind-Waldock, a broker in Chicago. "There's a lot of pent-up buying interest, and when silver began to make a move earlier today, there was a scramble to back into the market."
Silver futures for May delivery traded at $42.085 at 4:33 p.m. in electronic trading on the Comex in New York. Earlier, the price rose $1.427, or 3.5%, to settle at $41.664. That gain was the biggest since Dec. 28.
The metal reached a record $50.35 in 1980.
Gold futures for June delivery rose $16.80, or 1.2%, to close at $1,472.40/oz. The price reached $1,475.90 after the settlement. The record high was $1,478 on April 11. Based on the closing price, the metal has gained 3.6% this year.
U.S. wholesale costs increased 0.7% in March, led by surging energy, the government said. Compared with a year earlier, prices climbed 5.8%. Silver reached $42.21/oz.—the highest in 31 years. And the white metal has climbed 36% this year—the biggest gain among the 19 raw materials in the Thomson Reuters/Jefferies CRB Index.
"Inflation is back in vogue," said Adam Klopfenstein, a senior strategist at Lind-Waldock, a broker in Chicago. "There's a lot of pent-up buying interest, and when silver began to make a move earlier today, there was a scramble to back into the market."
Silver futures for May delivery traded at $42.085 at 4:33 p.m. in electronic trading on the Comex in New York. Earlier, the price rose $1.427, or 3.5%, to settle at $41.664. That gain was the biggest since Dec. 28.
The metal reached a record $50.35 in 1980.
Gold futures for June delivery rose $16.80, or 1.2%, to close at $1,472.40/oz. The price reached $1,475.90 after the settlement. The record high was $1,478 on April 11. Based on the closing price, the metal has gained 3.6% this year.
