"The PRICE of BOTH gold and silver hit a 1-month high in London on Thursday morning, gaining 0.9% and 2.1% respectively as world stock markets also rose, as did the single Euro currency and industrial commodities.
"US, German and UK government bond prices all ticked lower, nudging yields higher, after Spain and Italy successfully auctioned €22 billion in new debt between them, and at much lower interest rates than investors demanded in December.
Dollar prices to buy gold touched $1658 per ounce. Silver extended its New Year gains to 10.0% at $30.70.
"Because gold is easy to sell, it has seen the same flight to cash that risk assets such as equities have suffered," says Mark Dampier head of research at UK equity and fund brokerage Hargreaves Lansdown, writing in Money Marketing magazine."