Silver surged more than 5 per cent, across $49 (U.S.) an ounce, and gold hit another record high after news emerged that China is considering setting up new investment funds that will diversify its foreign exchange holdings further beyond the U.S. dollar.
Even as analysts murmured about
China's new investment funds include one or more to invest a part of the country's foreign reserves in energy and precious metals, and another that could intervene in foreign exchange markets, the New Century Weekly said, citing sources close to the central bank.
Safe-haven buying following increasing violence in Syria and Yemen over the weekend also helped lift precious metals.
Oil rose as well, nearing $113 a barrel, after Libyan rebels in control of key oil-producing areas in the OPEC nation said they won't produce crude for at least a month as they repair fields damaged in fighting.
The U.S. dollar index languished around its three-year low on Monday, with investors expecting further weakness because the upcoming Federal Reserve's policy-setting meeting is likely to announce the continuation of low interest rates. The loonie traded as high as $1.0517 (U.S.).
U.S. stock futures were higher. Dow futures rose 0.3 per cent to 12,467 and S&P futures gained 0.3 per cent to 1,334.90.
Many stock exchanges in Europe, Hong Kong and Australia were closed for Easter Monday. Japan's Nikkei 225 index closed 0.1 percent lower at 9,671.96. South Korea's Kospi rose 0.8 percent to 2,216.
Sonali Verma