Gold futures prices moved sharply higher Wednesday, following reports of large-scale buying of bullion in Europe.
Prices advanced as much as $10.80 an ounce on the Commodity Exchange in New York, with silver futures pulled along to higher levels.
"There was substantial buying of London gold bullion and the fixing price was up about $2.50 in the morning," said Jack Barbanel, an analyst in New York with Gruntal & Co.
"My suspicions are that there is substantial Middle East interest in buying precious metals," he said. "With the dollar slipping lower in relation to foreign currencies, it's a good time for Arabs to get out of the dollar. There was very good activity, very stong with speculators and the public coming into the market."