Gold and silver reach new highs

On Friday, the price of Gold climbed to a record high, due to the significant depreciation of the dollar.

The price of gold with June delivery rose 14.80 dollars (1%) on Comex New York, ending the day at 1,474.10 dollars/ounce. Prior to that, the price of gold rose to 1,476.40 dollars/ounce, the highest level ever recorded.

Last week, the price of gold, which is considered a safe haven and a means of protecting against inflation, gained 3.2%, the biggest rise since May 2010. Between April 4th and April 8th, the price of gold made four historic highs.

On Friday, on the London Metal Exchange, the price of spot gold rose 1.2%, to a record high of 1,475.52 dollars ounce.

Analysts state that the rising price of gold is currently caused by the depreciation of the dollar, and fear of inflation, respectively. The US Federal Reserve did not take any measures against inflation, and kept the policy rate in the 0-0.25% band, where it has been sitting since December 2008, in order to stimulate the economy. On the other hand, on Thursday, the European Central Bank decided to raise the key policy rate by 25 basis points, to 1.25%.

Under these circumstances, the price of silver has also risen significantly, surpassing the level of 40 dollars an ounce.

The price of silver with May delivery has increased 1.056 dollars (2.7%), to 40.608 dollars an ounce in the US market. After the closing of the regular session, the price rose to 40.945 dollars an ounce- the highest level since January 1980. In 1980, the price of silver reached an all-time high of: 50.35 dollars ounce.

Last week, the price of gold rose 7.6%, the biggest rise since February.