January 28, 2006	Saturday	Zilhaj 27, 1426

LONDON, Jan 27: Silver spiked to a 19-year high on Friday as fund managers poured money into the metal on speculation any launch of an exchange-traded fund (ETF) might spur demand, while gold hovered near last week’s 25-year peak.

Gold ETFs are traded on some of the world’s major stock exchanges.

These funds have so far accumulated 425 tons of gold. Analysts say an amount equal to 20 percent of investment in gold ETFs might generate about 4,500 tons of silver demand.

Gold fell to as low as $555.25 in Asia before rebounding to $559.20/560.10, against $559.70/560.60 late in New York and off last Friday’s 25-year high of $567.60.

Gold has been pushed to the highs by worries about rising energy costs, dollar instability, fears of attacks on the US mainland and tension in the Middle East over Iran’s nuclear intentions.

Platinum fell as low as $1,046 before rising to $1,055/1,059, versus $1,056/1,060 in New York and off an all-time high of $1,060 hit on Thursday.—Reuters